alt Hacker NewsI never invested in gold because it is not productive. I don't have any money, either (other than pocket money), because I've invested all of it.
Gold is usually invested in as a hedge against inflation. It's not really the gold that goes up and down in value, it's the dollar that goes down and up.
Replies
fjordofnorway • yesterday at 10:26 PM
Given that the gold and the dollar are not productive I think one is betting that society is less productive than inflation when one invests in gold and that one will need to pay a ransom over a long weekend when one holds dollars.
This is an oversimplification IMO. There are higher order effects on the price of gold that makes it not directly related to the value of the dollar.
I'm pointing this out because I have seen a lot of sentiment recently about how the dollar is crashing, just look at the price of gold. Yes, the dollar is decreasing in value faster than usual, but it also isn't crashing in the way that gold is spiking.
This sentiment I think drives speculative gold demand, from standard speculative investing FOMO as well as from emotionally driven inflation fear well beyond what is realistic. The same thing happens to the stock market.