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by brandall10
2717 days ago
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Ignore the utility of gold, I feel that just muddies the waters. The volatility of crypto makes it a terrible store of value. While people may use it as such, it is primarily a speculative asset. OTOH, gold has historical precedent assuring its stability. So while that could suddenly change, its going to take a fairly sizable event to shift the perception. Like a nuclear holocaust or something. If there's any generational shift in this thinking it's purely naivety. |
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https://goldprice.org/gold-price-history.html
At the time of my birth, gold was worth $800/oz. By the time I was old enough to ask "What's gold?", it had fallen to $300/oz. It was up to $500 by 1991, then began a long slide down to almost $200 in 2000. Then it rapidly zoomed to $1900 during the Financial Crisis, and has since fallen back to $1200. If you invested in gold in 2009, you would've lost 40% of your money in constant dollar terms, and almost 6x relative to the S&P 500.
It's even worse if you zoom out to the 100 year history. Private ownership of any significant amount of gold was outlawed from 1933-1974, and owners were required to turn in their gold for $20.67 or face 10 years in prison.
It's not Millenials who are being naive here (well, maybe they are too). It's the generations before them who believe there's any such thing as a reliable store of value. Everything is speculative - things are worth only what other people will pay for them, and there's a long history (still continuing in places other than the developed world) of people not even doing that and just taking them at the barrel of a gun.