Goldprice all times high 1655 EUR Oz !!
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You cannot compare insurance with a speculation. They have completely different purposes and risk profiles.
An insurance never loses its value. Gold can and does it all the times. If you are so sure about what you say, just sell gold puts.
Gold is a hedge for deteriorating trust in government and (the financial system). If you have gold exposure and hold it as an insurance, it makes little to no sense having paper claims against financial institutions in such a scenario.
One`s portfolio should be split between multiple tangible assets and not just a single one. Stocks (bet on the current system), crypto (speculation on a new system) and precious metals (insurance).
One`s portfolio should be split between multiple tangible assets and not just a single one. Stocks (bet on the current system), crypto (speculation on a new system) and precious metals (insurance).
I just opened youtube and saw this 5h old video clip with the fear creating moron Friedrich.
And even that moron still doesn't get it that majority of coins are being hold by JPM which can tank bitcoins price any time they wish.
a 51% attack would be also easy double.......hell only the old miners in china had all time the chance to make a 51% attack.
All i see here are technical uneducated people with no background knowledge repeating the garbage they read on crypto︀ pages
And even that moron still doesn't get it that majority of coins are being hold by JPM which can tank bitcoins price any time they wish.
a 51% attack would be also easy double.......hell only the old miners in china had all time the chance to make a 51% attack.
All i see here are technical uneducated people with no background knowledge repeating the garbage they read on crypto︀ pages
That's true. It is also true that one gram of salt will always be one gram of salt, or one unit of sand will always be one unit of sand:
True.
Nevertheless, gold is pure speculation. It can go up or down by 50% and more in︁ a relatively short period of time which makes it a speculative assets.
Try to get︂ a loan against gold: Your bank will do that with ease but it will charge︃ you higher interest rate as if you would loan against your blue chip Nestlé stocks.︄
That said: Gold is considered to be a relatively high risk asset due to its︅ price fluctuations.
Precious metals as an asset︆ class are not to be confused with an insurance. They do not even work as︇ a hedge.
Look up what Platinum, Palladium, Rhodium and Silver did during the many crisis︈ situations we had just in the last 25 years: They all tanked with just the︉ smallest sign of crisis on the horizon (and more often than not even without a︊ crisis)! Completely useless as an insurance.
Gold is better in this regard but it is︋ still far away from being an insurance: As long as an object fluctuates and does︌ not simultaneously adjust with inflation/devaluation of competing fiat it can not be considered an insurance.︍ An insurance is something which works immediately when a worst case scenario happens - gold︎ does not do that.
- What happens if suddenly there is gold in abundance (new discoveries on Planet Earth or Space Mining)?
- What if people suddenly find out that it is nonsense to first look for something underground to then store it safely, away from eyes of others (gold has no significant industrial usage case)?
- .... and endless more negative cases.︀
True.
Nevertheless, gold is pure speculation. It can go up or down by 50% and more in︁ a relatively short period of time which makes it a speculative assets.
Try to get︂ a loan against gold: Your bank will do that with ease but it will charge︃ you higher interest rate as if you would loan against your blue chip Nestlé stocks.︄
That said: Gold is considered to be a relatively high risk asset due to its︅ price fluctuations.
Precious metals as an asset︆ class are not to be confused with an insurance. They do not even work as︇ a hedge.
Look up what Platinum, Palladium, Rhodium and Silver did during the many crisis︈ situations we had just in the last 25 years: They all tanked with just the︉ smallest sign of crisis on the horizon (and more often than not even without a︊ crisis)! Completely useless as an insurance.
Gold is better in this regard but it is︋ still far away from being an insurance: As long as an object fluctuates and does︌ not simultaneously adjust with inflation/devaluation of competing fiat it can not be considered an insurance.︍ An insurance is something which works immediately when a worst case scenario happens - gold︎ does not do that.
Time will tell. In 4 years we will check again this thread and see how your short position on bitcoin (if you have the guts to put your money where your mouth is) is performing and how much money you are making on gold.
But the simple fact that nobody knows where gold will be in 4 years already rebuts your claim that gold is an insurance.
But the simple fact that nobody knows where gold will be in 4 years already rebuts your claim that gold is an insurance.
Well you are confusing 2 different scenarios here. You are talking about precious metals and their︂ performance in a working financial system and trust in government. If we have margin calls︃ due to lack of liquidity, metals (mainly paper claims on it) will be sold off.︄ Nothing will soften your $ denominated portfolio blow other than future short hedges in stocks,︅ commodities, precious metals and VIX, USD & JPY longs.
I was taking about the insurance︆ aspect of physical precious metals (yes mainly gold) as an anchor for a new financial︇ system. This is a completely different set up compared to margin calls and a liquidity︈ crisis.
I was taking about the insurance︆ aspect of physical precious metals (yes mainly gold) as an anchor for a new financial︇ system. This is a completely different set up compared to margin calls and a liquidity︈ crisis.
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