Gold should go up against the dollar and other currencies due to inflation alone. Also, banks say you have $X but in truth they only keep $X-$Y in the bank. So if everyone wanted to withdraw their money then the banks would be illiquid. There MIGHT be a collapse of the system in the future.
I understand that gold doesnt have any intrinsic value (neither does any currency) but in the situation of a collapse, people would use gold to barter goods and services with. It would be difficult to barter with wheat/soybeans etc. because of storage problems and perishibility.
In a long period of time, shouldnt Gold outperform or atleast be the same as the return of an Ally's savings bank? The supply of Gold is finite but the supply of money isn't. Inflation makes you lose money if you keep it in a bank.
Also, why has the price of gold been falling since the past few years? Shouldnt it increase because of inflation? Did it decrease because we are creating artificially high supply? (people can paper trade gold and the people on the other side of the trade might be shorting it)
Submitted May 17, 2018 at 08:12AM by KarmaKingKong https://ift.tt/2wUXntg
