Post
Topic
Board Economics
Re: Bitcoin or gold?
by
deisik
on 28/11/2016, 20:36:15 UTC
In fact, gold prices have never been stable. Recently, the price has been slowly but surely declining:

In the last half-year gold lost almost 15% of its value, from $1,366 in this July down to $1,183 per troy ounce today. Some are claiming that gold might eventually drop to 850-650 dollars, though I don't really believe it can fall significantly below the $1,000 mark due to powerful support from the gold bugs around that level...

In any case, to think of gold prices as something rock solid has more to do with wishful thinking than harsh reality

I would not regard a 2 month period a reasonable investment timeframe as you show in your chart above.  I also still believe the fundamentals for gold are very strong in the mid term when you consider world debt, increase in money supply and the turmoil across the globe that feeds gold price

I see that you love these sleeky charts from BullionVault

My chart was to show that gold prices are not as stable as many come to think. If we cut the crap and bravely face the facts, we will see that the price of gold, given its multimillennial history as a store of value and magic associated with it, is, in fact, no less volatile than Bitcoin. Especially if we further take into account how long gold has been around and how young Bitcoin is. We could, for example, equate 1 month of Bitcoin to, say, 50 years of gold, and we would get a very different picture