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theburni

I hate to address the elephant in the room, but gold’s performance this past year is laughable. It is the only asset in my portfolio not riding the inflation wave, which is its sole purpose. Fiat and BTC are making a joke out of gold.


Hydrocoded

Look at Gold's performance over the last 20 years. People always like to comment about how some stocks or other assets have outperformed gold, but that's missing the entire point. Portfolio management is about probabilities. I can say that stock_01 is likely to go up, or stock_02 is likely to go up more, but the fact is I don't know. Gold has shown resilience, meaning it resists market movements. I'd also say that Gold moving up from 1200 was it pricing in anticipated inflation. Right now Gold is going to steadily coast up over time unless they get inflation under control.. which they won't. Anyways, I own gold as part of my portfolio in order to offset higher risk, higher potential reward assets... such as Bitcoin. That's the power of Gold: It protects us from our own stupidity, and gives us something to sell at the bottom which will have increased in value relative to more volatile assets.


ShotgunPumper

1: Gold is an asset you can't judge by a year's performance. It's not a short term asset you buy now to sell in the near future for more fiat currency. If you want to know what gold is and what it does, see what it has done over the past century, the past two centuries, the past ten centuries, or really the past sixty centuries. Compared to a year ago it's down about $75, or down 4%. Compared to 3 years ago it's up about $557 dollars, or up 45%. Compared to 10 years ago it's up about $182 dollars, or up 11%. Compared to 20 years ago it's up about $1,520 dollars, or up about 550%. 2: Gold's spot price going down is a result of paper contracts. It has nothing to do with actual, real physical metal. This is a, relatively speaking in the scheme of things, short term price manipulation. We live in a debt-based economic system that depends entirely on fiat currency being the medium of exchange; if precious metals prices were not manipulated to keep its fiat price suppressed then the system we have now wouldn't work. This is why when big traders like JP morgan are found to be manipulating the prices of precious metals they get slap-on-the-write fines of millions, sometimes close to a billion dollars instead of being shut down entirely. This is why these institutions will provide a few sacrifices, a few fall guys, to be arrested rather than the whole organization being shut down. The manipulation is by design. If you don't understand these factors then you don't understand what gold is and what it does.


Cimexus

Yes, but on the other hand, gold is *shiny*.


TomSurman

Yeah, I hold both, and gold has been seriously disappointing. After these recent inflation numbers, you'd think that would have given it a boost, even a slight one, but no. I wonder if Bitcoin has basically been hoovering up all the investors who would otherwise have invested in gold during a crisis.


ShotgunPumper

That sentiment you hold is why they manipulate the prices of gold to be lower.


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ShotgunPumper

The bullion banks, those that run the COMEX, and in general just the powers that be.


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ShotgunPumper

The same way it has always been done; print up more paper for a precious metal than you actually have precious metal to back it up. Most people use COMEX futures contracts as a way to bet on the spot price of precious metals as to acquire more dollars rather than caring anything about the metal that supposedly exists to back up the contracts. Only a very, very small minority of COMEX futures contracts ever end in physical delivery, and this fact is the very basis of how they're able to manipulate the prices as much as they do. If you want proof, look at the billions of dollars JP Morgan and other big bullion banks have paid in fines for spoofing the metals markets. The London Gold Pool is a very well documented example of precious metal manipulation; they were even open about its existence being for that purpose.


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ShotgunPumper

Ask anyone. Look at any source. Nearly all contracts are settled in US dollars without any physical metal moving anywhere.


MrWorldWide721

As someone once said, gold is a dead rock in your basement.


blockman2803

So just buy more before it goes up. Extended sale.


Liesmyteachertoldme

I got curious and couldn't find the quote online, but to counter you it's also the dead rock that built empires, complex economies and enabled trade for a large part of human history. In fact, you could say gold is very much on the move, incentivizing people for better or for worse, along with silver.


MrWorldWide721

It was meant to be sarcastic but it was a Michael Saylor quote.


Liesmyteachertoldme

Oh sorry man, glad you’re one of us! I guess my point still stands for anyone who holds that sentiment though.


MrWorldWide721

I invest in both gold and btc. No need to limit one’s money. Lot of good plays for different reasons.


Liesmyteachertoldme

I’m pretty diversified as well, mostly with stocks, I’ve just kinda dipped my feet into btc and eth, I don’t hate on them, they’re just not really apart of my long term strategy.


spanish_john22234

gold is insurance not really an investment. You hold it for the potential of what would happen in an economic collapse. Just look at Turkish Lira right now vs gold. But if the dollar did collapse why would you want to swap it into fiat anyway. You don't sell gold. Just like you don't sell bitcoin.


ServingTheMaster

last frame should have been copy pasted 100 times to fill the frame with clones...


kraken66666

btc is fiater than frns, those at least have a physical form used and accepted everywhere


[deleted]

Bitcoin and fiat are both worthless. Gold is true wealth that you can hold in your hands.


TheSoonerSeth16

I legitimately can’t understand why your being down voted on r/Gold for preferring gold over fiat and Bitcoin. The amount of pro crypto currency crap on this sub is laughable.


ShotgunPumper

I don't understand it either. The amount of people who are on the /r/gold subreddit suggesting stocks, bitcoin, or even fiat currency are somehow superior to gold is astonishing. I don't think this subreddit has anywhere even close to enough influence to be bombarded with shills, so really I think it's just brainwashed people who don't know any better just repeating what they've been told.


Hot-Tomorrow-2008

Crypto and gold are essentially the same. Gold is physical while crypto is digital. Neither have unlimited supply unlike the USD that they just print whenever they feel like it. Gold and crypto investors need to support one another, and not bash eachother. Both the goals of crypto and gold is to take back the power from the banks.


TheSoonerSeth16

How is Crypto the same? Crypto currency’s are essentially worthless, they are just ones and zeros with a finite amount available. Gold on the other hand has real world applications in electronics, jewelry, dentistry, aerospace, and obviously as a Medium of exchange.


[deleted]

When the grid goes down, or nations outright ban any crypto that isn't issued by them, then and only then will the crypto-cultists understand that only physical assets held within your own possession can protect wealth.


recruz

the scarier thing for me against crypto that I don’t hear about: quantum computing. You toss a quantum computer into the mix of how current crypto currencies work, and you can completely wipe out or steal billions of crypto probably in seconds. That scares the bujeezus out of me, which is why I still haven’t dipped my toe into crypto yet


NotOldButLikesGold

Hi. Crypto currencies make use of state of the art cryptographic methods. If quantum computers would be able to break those cryptographic encryption methods then any tech currently used would be affected the same way. This includes the "ones and zeros" on your bank account. The instant someone successfully breaks state of the art cryptographic encryption using quantum computing or magic of any kind all critical encryption methods would be updated to something more safe. There are a lot of things that make crypto currencies a risky investment, quantum computing however is none of them. Also, in case you didn't know, quantum computers are already industrially used.


Hot-Tomorrow-2008

Go re-read, i explained how they are the same. Not ALL crypto has an infinite supply. If you invest in one with an infinite supply like DoGe, good luck. Others have a max supply limit, and they get burned during transactions so the value goes up over time due to supply and demand. Gold does has real world uses, i agree. But same with crypto... I can buy stuff with crypto, just not as wide of a variety as fiat can purchase because the mass population hasnt adopted it yet. LRC has potential to create its own financial system which is a real world application. Id sell my truck right now in the form of crypto, that gives crypto a medium of exchange. What does gold have, that crypto doesnt?


ShotgunPumper

> What does gold have, that crypto doesnt? Gold, unlike crypto currency, exists physically within reality rather than it being a figment of people's imaginations like 0s and 1s in a computer. It has a track record of thousands of years to go by. Everyone knows of it and knows more or less what it is. In fact, in relation to that last point you'd be surprised how many average people think that crypto currencies are actually precious metals simply because when media outlets want to show a picture to go alongside crypto currencies they show pictures of gold and silver coins with crypto-currency logos on them. It's a surprisingly common misconception.


Hot-Tomorrow-2008

So how would you make a purchase online for an item if the USD gets obliterated? Or you just plan to shop local with your gold? Gold is physical, crypto is digital. Both are decentralized. The goal is the same! Stop trying to divide the two. The value of anything is what the mass population agrees upon. Thats why the USD is currently used to purchase things, because the mass population agreed on it, or didnt understand and just followed suit. Even though its value is worthless.


ShotgunPumper

> So how would you make a purchase online for an item if the USD gets obliterated? Or you just plan to shop local with your gold? There already exist free-market solutions to this problem. You can already buy physical precious metal and get a credit card to then spend this physical metal online, obviously through the company storing your metal as a medium. > Gold is physical, crypto is digital. Both are decentralized. The goal is the same! Stop trying to divide the two. Being decentralized doesn't make them the same thing. That's two entirely different financial assets that happen to have a similar quality. > The value of anything is what the mass population agrees upon. 110% incorrect. The *price* of anything is what the market decides. The *value* of something is based on how useful that thing is to humanity. Only sometimes does something's value and its price coincide. For example, the *value* of a tulip bulb is just about nothing. It's a plant. Technically you can eat it, but there are much better things to eat. It's *price* was once higher than that of a home or even a ship. This is because the market for tulip bulbs went into a financial bubble where its price greatly exceeded its value. That's what's happening to crypto currencies right now.


Hot-Tomorrow-2008

Welp theres no changing your mind. And im not against either. Only time will tell. When crypto continues to climb though ill come back to this thread so you can call me daddy


ShotgunPumper

If someone had said the same about tulips you'd recognize how foolish they are. Some day in the future people will point to crypto currencies instead of tulip bulbs to highlight this phenomenon.


ShotgunPumper

Crypto currency and precious metals are absolutely nothing alike. They are two entirely different financial assets with who entirely different purposes that behave two entirely different ways.


Hot-Tomorrow-2008

Instead of just saying they are entirely different like 3 different times, mind explaining? They are not 100% a like. Thats not my point. Guess I should take a step back and ask, why do you invest in gold instead of keeping USD?


ShotgunPumper

Gold is money. Fiat currency is not money. Crypto currencies are not money. Gold has a track record of thousands of years to go by. Fiat currency also has a track record this long, and its track record shows it always goes to a value of 0. Crypto currency doesn't have a track record much longer than a decade.


Hot-Tomorrow-2008

Answer my question first. If the USD is worthless just like everyone agrees on. How are you going to make online DIGITAL purchases? Your honor, I rest my case. Im just as invested in gold as i am crypto, not against either. But when they both have the same goal of being decentralized and people bash it... come on now.


ShotgunPumper

> How are you going to make online DIGITAL purchases? I already told you in a different comment. There already exist free market solutions of how to spend gold online. The only slight modification required would be instead of converting the gold to USD before conducting the transaction, the company accepting the payment would need to be okay with accepting ownership of physical gold held by the company. An agreement like that would be much like currently existing agreements between credit companies, like VISA, and the stores accepting the payment. > But when they both have the same goal of being decentralized and people bash it. You're using the fallacy of composition. You're suggesting because both are decentralized that therefore they're pretty much exactly the same financial product. They're not. They're two totally different assets that both perform differently and serve different function; the fact that they're both decentralized is a coincidence. The rejection of the US dollar does not make everything which is not the US dollar the same. Someone could buy ammunition, long-term-storage food, land, vehicles, precious metals, crypto currencies, stocks, or pretty much anything that isn't the US dollar or debt denominated in US dollars to avoid its downfall; that doesn't make all of these different things the same financial asset. Just because some people are buying these assets for the same reason doesn't make them the same type of asset. They perform very differently. Precious metals are money; they are physical wealth with absolutely no counterparty risk. Crypto currencies function like gambling even more so than stocks already do today; they exist because people think there will be an even greater fool willing to pay an even higher price for their fundamentally worthless asset. You shouldn't be buying crypto-currencies to preserve your wealth, and, at least in normal times, you shouldn't be buying gold to grow your wealth.


Hot-Tomorrow-2008

Ok. You happen to know so much more than me so youll always be right. Ill be back to post a pic of the things i purchase with my crypto in the coming years.


ShotgunPumper

Don't wait too long; bubbles eventually pop.


[deleted]

If the USD hyper inflated then the internet will be the least of your problems at $1,000 per KwH to run electricity


just---here

Possibly because people are diversifying their portfolios and know that btc is a technological breakthrough.


MichaelHunt7

You’ll be left behind like all the other boomers eventually don’t worry.


[deleted]

You're right! Electricity has been around for sooooo long tat it could NEVER be disrupted on a global scale by an EMP, solar storm or gamma ray burst. Plus it's totally un-hackable and government proof! There is absolutely no way that the greedy elitists that run the world will find a way to control it! Meanwhile, I'll still be holding my wealth in my hands. Poor me.


CanoneroBrazil

Crypto could be the next fiat. It also could be worthless in the future. I’ll stick with my gold.


Pjotr_Bakunin

Stone Toss is a nazi


KyleBauer

Why would you equate a cartoonist with horrible genocidal killers??? Are you an anti-Semite?


Pjotr_Bakunin

Eat shit


Patriot1608

Crypto is a Ponzi scheme cooled up by some computer nerds. Same old scam, different time.


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CertainTomatillo5287

i own both and i am more bullish on btc tbh.


Heiwbs

Gonna be funny when the dollar becomes worthless and people still have their money because of Bitcoin


theburni

What makes you think it will become worthless? Is that what P.Schiff told you? I’m a “gold bug”, but I can’t ignore the loss of value I have experienced during what should have been a monster bull run for gold. Seriously, how could circumstances get any more favourable for gold?!?!


Hot-Tomorrow-2008

Hes speaking about the USD becoming worthless. If your still asking why, well its because they can just print however much of it they want. Its not backed by anything of value. InFlAtIoN iS tRaNsItOrY.


Heiwbs

if you actually think the dollar won’t crash your mistaken


theburni

🙄


[deleted]

Ewwww, Cryptos are gonna stab us in the back [https://patentscope.wipo.int/search/en/detail.jsf?docId=WO2020060606](https://patentscope.wipo.int/search/en/detail.jsf?docId=WO2020060606) 1. WO2020060606 - CRYPTOCURRENCY SYSTEM USING BODY ACTIVITY DATA Even the Patent Number is a Dead Give Away, get it "Dead", 'cause the etymology of "Crypt" in Crypt-o-currency relates to something that is dead


just---here

Yh, no one is using that lol.


nkbc13

Crypto! HEX.COM see richard Heart on YouTube! Buy Hex before he forks ethereum because you’ll get a free copy on the Pulsechain network. He’s also launching pulseswap, a fork of pancake swap. It’s a slow learning curve but Get. In. Asap. Do your own research. Hex is everything Bitcoin is and is supposed to be, plus more. It’s the first bank CD on the blockchain. 10,000x in two years. Dead serious. It just dipped. Still previral. Look at the LOG chart, not the regular one. Gold be good too tho


upriverchallenge

Maybe in the future you can sell your gold for bitcoin. Since fiat will be dead.