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by hugh3 5491 days ago
I've heard that unlike say steel, the majority of gold ever mined is still in circulation, and by circulation I mean locked vaults

Quite possible.

A few large organizations control the vast majority of it, and this is especially true since governments have not needed to hold gold for years

Say what? A few large organizations, who are not governments, hold the vast majority of the world's gold? Are we into conspiracy-theory talk here?

Lots of people seem to think gold is 'safer' than paper currencies, while it seems the same

"Safe" depends on what you mean. For instance, you could say "US dollars have a 99% chance of retaining at least 80% of their value in five years, and a 99.9% chance of retaining at least 10% of their value in five years. Gold has only a 80% chance of retaining at least 80% of its value in five years, but a much higher 99.999% chance of retaining at least 10% of its value in five years".

Gold gives you much more volatility in the short term, but acts as a hedge against the collapse of any particular currency.

I wouldn't buy it though. I'd buy land (with houses on it), which acts as a hedge and pays you income.

1 comments

Of course, your ability to continue to own that land is also dependent on the continued existence of a government that remains able and willing to enforce the laws of property ownership and does not decide to raise property tax rates to confiscatory levels.