Gold explained

[Scott]

I will add that banksters are touting crypto and CBDC as the new gold.

Nope. They use fiat dollars, as directed by the Federal Reserve.
Cryptocurrency, such as Bitcoin, Dogecoin, and others can be used as a currency, but they are not based on gold. They are based on limitations imposed by the blockchain encryption. New coins MUST conform to that encryption and are slow and difficult to 'mine'. Such blockchain systems only allow a certain number of coins total. Fractional coins are typically used for transactions.

Cryptocurrency has a few major disadvantages:
* They require access to the internet to conduct a transaction. (Gold doesn't!)
* They require technical expertise that most people don't have to use the digital 'wallets' safely.
* Losing the password on a 'wallet' or losing the 'wallet' permanently removes the coins therein from the blockchain, and you permanently lose that much currency.
* As transactions are conducted, the blockchain gets longer and longer, and the entire thing must be copied from machine to machine to verify transactions. There is no protocol to mitigate this. It's similar to the 'hosts' problem before DNS. Unfortunately, a distributed database like DNS allows easy forgery of transactions or even Coins. A Coin looks like it transferred, when in fact will get rejected once the entire blockchain is scanned.

While people like Elon Musk likes cryptocurrency, I just don't see it replacing the fiat dollar.
I see a return to gold and silver, if anything. Transactions can be conducted without the internet, using easily obtainable equipment for checking purity. It is very compatible with today's credit systems, backing by gold rather than by a fiat currency. Loans, credit cards, and all of that can still work with gold and silver as currency.

The fiat dollar IS failing. It's not failing as fast as other nations (like Japan!), bit it IS failing. It's a worldwide race to the bottom. The world has never been here before.

Of the crypto disadvantages you mention, the only one I think could be serious in certain emergencies is the access to the internet one. As I imagine you know, the internet is fairly resilient, but it's not invincible. The fact that it is an internet currency is also its biggest -advantage- over something like gold, so long as the internet is working, because it means that cryptocurrencies can be moved globally quite quickly. Physical gold, or any other precious physical thing, can't be. They can ofcourse work in tandem, with each compensating for the other's weaknesses in really bad times (spotty internet/need to move a currency large distances quickly), and I believe some have done this- that is, a cryptocurrency could be backed up by gold or another precious metal. Or exchanged directly for a precious metal. Up until now, I don't believe this has been done very much, because most national currencies have been fairly stable, but if that changes, I can easily imagine it being done more often.

 

[Walt]

Physical gold is money that benefits those holding it

So you benefit from not investing your money? You could benefit from investing your money in increased production, but instead you want to benefit from just stuffing your money under a mattress?

Gold is naturally deflationary, and deflation makes investing in the economy very difficult. If I can make 10% return a year on just hiding my money under a bed, why would I want to invest in better manufacturing equipment?

 

[goat]

So you benefit from not investing your money? You could benefit from investing your money in increased production, but instead you want to benefit from just stuffing your money under a mattress?

Gold is naturally deflationary, and deflation makes investing in the economy very difficult. If I can make 10% return a year on just hiding my money under a bed, why would I want to invest in better manufacturing equipment?

What the hell are you talking about, Walter? People and countries are still investing in the dollar. I have day trader friends who keep telling me cash is king. I don't get it.

 

[Walt]

What the hell are you talking about, Walter? People and countries are still investing in the dollar. I have day trader friends who keep telling me cash is king. I don't get it.

What I am talking about is that gold is deflationary, and unstable, so is a terrible currency.

 

[EdwinA]

Well, Walter, we know that you have a “whole lot of money.”

You have told us over and over and over.

Are you still reporting to your Uber Eat’s job on Sunday afternoon…at 5PM?

All the commies, who have pretty much proven Mommy still buys their groceries for them, are all billionaire day traders who average 5,000 % a week on their bets. We know this because they say so. lol

 

[EdwinA]

Gold is a commodity. It's no different than steel (iron), silver, copper, tomatoes, or lumber for that matter. The price is set by two things:

Demand for use in end products
Speculation on trading markets.

Gold is widely used in industrial practices usually as a plating. Gold in its pure form is very malleable and not nearly as useful as it is when alloyed.

It is a hard currency, used by most of the world outside the First World economies, and has been for millennia. Recent immigrants to the U.S. still trade in it extensively, especially Indians and ME populations, and of course Asians. But the dollar is king in large scale international trade, as most of the previously mentioned groups' countries have shit for currencies or are too small to make much of a dent in international trade transactions.

U.S. Trade Balance 1970-2025 | MacroTrends

External balance on goods and services (formerly resource balance) equals exports of goods and services minus imports of goods and services (previously nonfactor services). Data are in current U.S. dollars.

www.macrotrends.net

A large part of out inflation is due to the hemorrhaging of dollars that don't get re-circulated back through our own economy. Total all those years of deficits up, then compare them to our own deficits here.

 

[goat]

What I am talking about is that gold is deflationary, and unstable, so is a terrible currency.

Gold is not a currency, gold is money.

 

[Into the Night]

Gold should be at $4000 an once but the US is keeping it down to save the dollar. Physical gold is money that benefits those holding it, whereas the dollar is fiat currency in decline. This is economics 101.

My concern is the US will crash gold with the hope of saving the dollar.

It can't.

 

[Into the Night]

US national debt has been kicking dollar default down the road for a very long time. There is no legitimate reason for gold to be held under $4000 an oz simply to convince the world the dollar is a better investment.

It's a clear sign the US is desperate and willing to do anything to control the global economy.

The US does not control any economy.

 

[Into the Night]

It is a hard currency,

Gold is currently not used as currency except to settle some international trade and in Iran.

used by most of the world outside the First World economies,

There is only one Earth.

and has been for millennia. Recent immigrants to the U.S. still trade in it extensively, especially Indians and ME populations, and of course Asians. But the dollar is king in large scale international trade, as most of the previously mentioned groups' countries have shit for currencies or are too small to make much of a dent in international trade transactions.

U.S. Trade Balance 1970-2025 | MacroTrends

External balance on goods and services (formerly resource balance) equals exports of goods and services minus imports of goods and services (previously nonfactor services). Data are in current U.S. dollars.

www.macrotrends.net

A large part of out inflation is due to the hemorrhaging of dollars that don't get re-circulated back through our own economy. Total all those years of deficits up, then compare them to our own deficits here.

There is only one cause of inflation: printing dollars faster than the wealth is increasing due to capitalism.

 

[Into the Night]

Of the crypto disadvantages you mention, the only one I think could be serious in certain emergencies is the access to the internet one. As I imagine you know, the internet is fairly resilient, but it's not invincible. The fact that it is an internet currency is also its biggest -advantage- over something like gold, so long as the internet is working, because it means that cryptocurrencies can be moved globally quite quickly. Physical gold, or any other precious physical thing, can't be. They can ofcourse work in tandem, with each compensating for the other's weaknesses in really bad times (spotty internet/need to move a currency large distances quickly), and I believe some have done this- that is, a cryptocurrency could be backed up by gold or another precious metal. Or exchanged directly for a precious metal. Up until now, I don't believe this has been done very much, because most national currencies have been fairly stable, but if that changes, I can easily imagine it being done more often.

Any currency dependent on the internet to conduct a transaction will not succeed on any large scale.

 

[Into the Night]

Gold is not a currency, gold is money.

Paradox. Irrational.

 

[EdwinA]

Gold is currently not used as currency except to settle some international trade and in Iran.

It's used as currency nearly everywhere, except in Euro and U.S. stores.

There is only one Earth.

And most countries prefer gold in transactions.

There is only one cause of inflation: printing dollars faster than the wealth is increasing due to capitalism.

They print more dollars because trillions disappear overseas and domestically over 80% of them float to the top 10% and stays there, and doesn't recirculate back down, except through programs like Social Security, defense contracting, and govt. construction projects and the like, and of course corporate welfare.

 

[Into the Night]

It's used as currency nearly everywhere, except in Euro and U.S. stores.

Nope. Only in a very few places. The entire world, with very few exceptions are on fiat currency.

And most countries prefer gold in transactions.

Nope. Every country (with one exception) is using fiat currency.

They print more dollars because trillions disappear overseas

Irrelevant. They are still dollars.

and domestically over 80% of them float to the top 10% and stays there,

Making up numbers and using them as data is a fallacy. Argument from randU fallacy.

and doesn't recirculate back down,

Dollars circulate everywhere.

except through programs like Social Security, defense contracting, and govt. construction projects and the like, and of course corporate welfare.

The economy is not government welfare programs. The use of the fiat dollar is not restricted to such programs either.




I would like to see gold and silver used as currency again. It may happen as the fiat systems around the world devalue further and further. Already people are looking around for another currency. I think gold and silver had a lot of advantages over any kind of digital currency such as Bitcoin.

The Japanese Yen has effective gotten so bad that people there are turning to Bitcoin for their transactions. As gadget loving as the Japanese are, and as cohesive a society they are, it may work there...but it won't work anywhere else on a mass scale.

Gold and silver currency is simple, does not require the internet or any other network to conduct a transaction, and has been in use for thousands of years. It's purity is easily verified by the simplest of tools, which anyone can obtain rather cheaply.

Gold and silver are also the only legal currency specified in the U.S. Constitution. The fiat dollar created by FDR is literally unconstitutional and the entire Federal Reserve with it.

 

[Walt]

It's used as currency nearly everywhere, except in Euro and U.S. stores.

I have traveled a bit, and seen nowhere that gold can be used in an ordinary store.

 

[Earl]

Almost no gold is consumed. It is mostly just stored in one form or another. Lumber is mostly consumed.

Wrong again, Walter.

Globally, approximately 4,899 metric tons of gold were consumed in 2023, including demand from central banks, investment, and technology. Jewellery demand was the largest single category, accounting for 49% of the total.

 

[Walt]

Globally, approximately 4,899 metric tons of gold were consumed in 2023, including demand from central banks, investment, and technology. Jewellery demand was the largest single category, accounting for 49% of the total.

How do central banks consume gold? I thought they stockpiled it. Are you telling us that the gold they get will never again be used as gold?

The reality is that gold is mostly circulated, while many other materials are consumed. The gold dug up in the Roman Empire is still circulating.

 

[EdwinA]

I have traveled a bit, and seen nowhere that gold can be used in an ordinary store.

lol sure you have; and leprechauns and unicorns dance around in your pants.

 

[EdwinA]

Nope. Only in a very few places. The entire world, with very few exceptions are on fiat currency.

Nope. Every country (with one exception) is using fiat currency.

Irrelevant. They are still dollars.

Making up numbers and using them as data is a fallacy. Argument from randU fallacy.

Dollars circulate everywhere.

The economy is not government welfare programs. The use of the fiat dollar is not restricted to such programs either.




I would like to see gold and silver used as currency again. It may happen as the fiat systems around the world devalue further and further. Already people are looking around for another currency. I think gold and silver had a lot of advantages over any kind of digital currency such as Bitcoin.

The Japanese Yen has effective gotten so bad that people there are turning to Bitcoin for their transactions. As gadget loving as the Japanese are, and as cohesive a society they are, it may work there...but it won't work anywhere else on a mass scale.

Gold and silver currency is simple, does not require the internet or any other network to conduct a transaction, and has been in use for thousands of years. It's purity is easily verified by the simplest of tools, which anyone can obtain rather cheaply.

Gold and silver are also the only legal currency specified in the U.S. Constitution. The fiat dollar created by FDR is literally unconstitutional and the entire Federal Reserve with it.

Another tourist who never really went anywhere. Thinks posting simplistic ideological wish lists is the same as real life.

I can spend gold like cash without ever leaving my county.

 

[EdwinA]

How do central banks consume gold? I thought they stockpiled it. Are you telling us that the gold they get will never again be used as gold?

The reality is that gold is mostly circulated, while many other materials are consumed. The gold dug up in the Roman Empire is still circulating.

It goes in and out of accounts same as any other currency does. You think Russia and Iran take Indian Rupees and Chinese yuan for their oil shipments form their 'allies??? You think they will take Russian Rubles for anything? lol yes, those unicorns in your pants must be stampeding.