"The investment is valued by supply and demand — mainly speculative demand.The jewelry market accounts for over 50% of gold demand, bullion and coin production account for 25%, central bank purchases, ~5%, with the remainder going to electronics and other industry.
In 1st world countries, no - elsewhere, probably - yes.I doubt anyone on here buys jewelry as an asset.
"The investment is valued by supply and demand — mainly speculative demand.
You seem to have ignored this part =>
"the value of gold is less affected by consumption and largely influenced by the status of the economy."
Absolutely and similarly with bitcoins. But try asking your girlfriend or wife to give up her jewelry! Gold has had a historic value throughout history.
Gold has had a value for about 2,000 years of our history not throughout all of our history.
If that's the case, why do they say "the value of gold is less affected by consumption and largely influenced by the status of the economy" as per that link cited in my previous post above? According to the World Gold Council, use of gold for investment purposes has increased by 240% over the past three decades.Typically it only accounts for 30% of demand, so to claim that 30% of the market has a more significant influence than all other factors just doesn't add up. Where the demand charts clearly show a more significant influence is when there are significant US market moves that result in a drop in the dollar, resulting in significant jumps in demand in other countries.
In the 2nd world, jewelry is still a bad investment. In India, gold bars and coins are common wedding gifts. India accounts for more the 25% of global demand for gold now, in a year with a higher number of favourable wedding dates in the Hindu calendar, the increase in demand for jewelry (as a display of status, not an investment) affects the price globally.
Store of value is increasingly significant when it comes to gold. Bitcoin too has it's own set of attributes. It can be transmitted at will around the world. It doesn't recognize borders. Turn up at a border crossing with gold and you may have it confiscated. The same issue doesn't exist with Bitcoin. Both are scarce assets but Bitcoin is about to become scarcer following the next halving.The point I was trying to make is that gold does have demands for it other than being an investment, such as jewelry, etc and as such the price is supported by this demand and as such bitcoins do not have other demands for it such as Jewelry. Equally, if you want to protect your money this can be achieved with a balanced portfolio and or an investment in physical assets such as property.
Yes, it's got a much longer track record - no question. However, you have to balance consideration of that (and that we can't say with complete certainty how things will pan out with Bitcoin) with the upside potential.Absolutely and similarly with bitcoins. But try asking your girlfriend or wife to give up her jewelry! Gold has had a historic value throughout history.
And perhaps the delusion is demonstrated on your side of the fence also, Brendan. It seems to me that some here have a difficulty in getting their heads around digital assets yet digital assets are here to stay.When people compare bitcoin to gold, I wonder if they have ever seen gold? Have they ever seen gold jewellery? Have they ever seen a painting with gold leaf? Have they ever picked it up?
It's comments like these which show how completely deluded Bitcoin fanatics are.
If that's the case, why do they say "the value of gold is less affected by consumption and largely influenced by the status of the economy" as per that link cited in my previous post above?
Yes, people in 2nd world countries (particularly India) like gold as a physical thing - but my understanding is that they use it as a means of storing wealth also. So within that tranche of use as jewelry is a seemingly significant 'store of value' use case.
They're focused on the U.S. economy? Where is that evident?Because they're a little too focused on the US economy, which accounts for a portion of the global gold market. The US market probably has a disproportionate share of investment demand for gold though.
I didn't know we were now straw polling Indians to get to the bottom of this. Seems like a hap-hazard way of establishing a basis to a claim or vice versa but I will do the same the next time I bump in to an Indian work colleague. :-DThe Indian people I work with laughed at that idea
What?
Tell Tutankhamun and his ancestors that.
When people compare bitcoin to gold, I wonder if they have ever seen gold? Have they ever seen gold jewellery? Have they ever seen a painting with gold leaf? Have they ever picked it up?
It's comments like these which show how completely deluded Bitcoin fanatics are.
Brendan
They're focused on the U.S. economy? Where is that evident?
This puts gold jewelry at 50% and direct gold investment at 40%. That's before we consider gold futures, etf's and other derivatives.
it is generally those who can't wrap their head around the concept of Bitcoin and new technology that continue to detract it
I don't think you can assume that. I don't see any of their content being deliberately US centric . Have a look at their section on accuracy / editorial principles.When a US publication talks about 'the economy', I find it's very rare they are referring to any market other than the US.
And what earthly incentive do they have to distort the figures? What does it bring for them? I'd also suggest that two separate publications are likely to be more accurate than a data sampling of asking your Indian work buddies.They provide no source for that. It's strange that they quote the Gold Council as a source to back up other stats, but don't explain why their numbers differ significantly from those of the Gold Council. Is it perhaps because they too are focused on the US market? That's more likely given their discussion of gold price moves versus the market or interest rates only reflects the US.
I would take issue with Jewelry being a bad investment....in the Middle East gold jewelry is sold by weight, and workmanship and a lot of thought go into its resale value. If you want to invest in Jewelry you could look at second-hand Rolex or Cartier.
A better understanding from a technical point of view - yes, you've shown that. Others here, not so much. One pretty infamous naysayer here seems to have formed his views on Bitcoin due to his dislike of the grouping that it came up with.I see that line trotted out quite a bit, but I have a fairly decent grasp of how Bitcoin works, and my understanding of the technological limitations shapes my opinion that it is a flawed concept. Covered extensively in other posts here.
I see that line trotted out quite a bit, but I have a fairly decent grasp of how Bitcoin works, and my understanding of the technological limitations shapes my opinion that it is a flawed concept. Covered extensively in other posts here.
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