thegreatdivide wrote on Mar 11^th, 2024 at 9:41pm:

As traders divest themselves of US dollars when interest rates are low, they do so to a large degree by investing in gold which increases the spot price of gold, particularly when central banks make large purchases of gold to protect their profits.

Anyone holding gold for at least 5 years is happy with the price of gold increasing because their investment has preserved their wealth and (hopefully) beaten inflation - which gold generally does.

MeisterEckhart wrote on Mar 11^th, 2024 at 9:53pm:


yes, but there are others ways to deal with inflation, rather than speculating - which most of the population are not equipped to engage in.

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So in order for any kind of money (fiat or otherwise) to work, there must be a shared belief that it has value?

Given the tsunami of reports ridiculing American so-called preppers when they stack so-called 'constitutional silver' - silver dimes, quarter and half dollars, until you listen to them explain themselves.

Preppers stack silver for use in a doomsday situation that includes the collapse of fiat currencies - in their case the US dollar - or to decrease reliance on banks, largely because they are driven by a fundamental feature of the American psyche - robust self-reliance. They do not expect or trust governments to save them or carry them.

The sort of American self-reliance that Thoreau wrote about.

freediver wrote on Mar 12^th, 2024 at 7:10am:


No, the economy's productivity must remain intact.

Not via belief, but in reality.

thegreatdivide wrote on Mar 12^th, 2024 at 10:28am:

The vast majority of world governments turn to gold during economic downturns (catastrophes in the current case of the CCP in China) to protect their respective nation's wealth.

The CCP has been accumulating gold on a gargantuan scale over the last few years in preparation for an imminent economic collapse as the manipulation of the Yuan and fraudulent reports of its strength become increasingly untenable.

Russian payment in gold to the CCP is largely 'black' gold - the best kind for the CCP as it does not appear on auditable records of acquisition which means it can be distributed to high-ranking corrupt officials without the inconvenience of it being obvious to the people.

thegreatdivide wrote on Mar 12^th, 2024 at 10:41am:

No one keeps gold in a bank account.

Europeans, Americans and Asians hold gold outside of banks and their transactions are private - something that irks governments and central banks.

In many of those countries, you will find gold vending machines that accept cash or cards to purchase gold bars and coins. In the US, even Costco and Walmart offer a gold purchasing service and their stocks are usually sold out within hours.

Australians generally do not use gold in that way - it is not part of Australian custom to do so. Most Australians are ignorant of the precious metals economy except when purchasing engagement and wedding rings and the occasional piece of jewellery.