Quote from: Stalker22 on April 17, 2025, 08:56:30 PM

Quote from: Iranus on April 17, 2025, 08:34:07 AM

If we compare the volatility of gold with other assets like fiat money, bitcoin or stocks...it is not wrong to say that gold is more stable.
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Well, I beg to differ. I think historical data shows that major fiat currencies, such as the dollar or euro, exhibit lower volatility than gold. Yes, fiat currencies can also experience periods of significant fluctuation (fo example, during periods of high inflation or economic crises), but gold tends to have larger percentage swings over shorter periods. As proof, look at the price in just the past few days or weeks, for example.

Well, looking at the current gold price, we can easily see that gold is more volatile than currencies like USD, gold has increased by almost 50% from April 2024 to April 2025. But in my opinion, the recent increase in gold prices is not only due to increased demand but also due to the depreciation of the US dollar. Governments are losing faith in the US dollar and are increasing gold imports at record levels, which has pushed gold prices up.

The value of inflation-hedged assets like gold or bitcoin increases not only because of increased demand but also because of inflation, the depreciation of fiat over time.