Will people come back to gold

[lonelygrimm]

in my opinion they did not return to gold, because they also did not really leave gold. people will continue to look for a place or business area, if gold is profitable, they will also invest in gold, as well as crypto. now crypto conditions are bad, so many people are returning to gold to seek other benefits.

[aoluain]

I think gold will always hold a certain appeal to a certain demographic.
There are also plenty of people who have not forgotten Gold and as
or when the bext financial crash comes, Gold will be in demand.

[STT]

I know what you mean I think but the point is gold would be the ultimate settlement for all value traded between countries.   It cant just be the people who like shiny things, it'll hold a tenth of its proper value if thats just it.

What?! That's not what the chart says. Between 1999 and 2011, the price exploded 660%. Since then, we've only seen a shallow retracement, implying a bullish consolidation. That illustrates a lot of demand!

Despite the emergence of fiat banking, gold continues to play an important role in finance today. Central banks have been heavily accumulating gold over the last decade as a matter of hedging and diversification. From a few months ago:

Central banks have been net buyers of gold over the last decade.   Yea I acknowledge that but also we should consider how much new paper money has been created also and thats the point about how much is gold used.    Its not circulated as value or used in trade especially, the backing to most money is still government debt which is seen as safest and most profitable as it has a yield.   Gold has no yield.
Russia has at times made itself poorer to continue building up gold reserves, while selling dollar yet dollar remains an appreciating asset often.   China buys up loss making gold mines to continue production at below the market price, they are aware of wanting to avoid spiking the price at all by any outright excessive open buying.

Overall we cant argue central banks favour gold as the majority of the worlds richest countries still are with the dollar system, what % gold hedge they hold is worth examining but its mostly the poorer developing countries which have increased gold reserves.  China had none previously from what I've read, the richer countries have largely been seen to increase debt and so far as I know its massively out of proportion with gold reserves

[exstasie]

Central banks have been net buyers of gold over the last decade.   Yea I acknowledge that but also we should consider how much new paper money has been created also and thats the point about how much is gold used.    Its not circulated as value or used in trade especially, the backing to most money is still government debt which is seen as safest and most profitable as it has a yield.   Gold has no yield.
Russia has at times made itself poorer to continue building up gold reserves, while selling dollar yet dollar remains an appreciating asset often.   China buys up loss making gold mines to continue production at below the market price, they are aware of wanting to avoid spiking the price at all by any outright excessive open buying.

For sure, selling dollars for gold or amassing gold via unprofitable mines may be detrimental in the short term. It may even be detrimental in the long term. After all, markets are unpredictable and hedging is just a matter of probability. Hedging often means paying a premium just in case an adverse event occurs.

There are no historical precedents for a reserve currency collapse of this magnitude, if the USD were to collapse at this point. So gold is a very obvious hedge due to its importance prior to the emergence fiat money. If the fiat system begins breaking down, I believe many states will immediately regress to gold-based money.

[bitbunnny]

I think people have never left gold. Those who prefered to invest in gold kept that habit. Besides I don't think at all that Bitcoin is replacement for gold and I don't like these two assets to be compared because I think they are quite different. I also think that Bitcoin investors and gold investors are quite different.
Investing in gold has a long history and not only by individuals but by the governments and banks too and I don't think this will change no matter the Bitcoin and other cryptocurrencies.

[Ayiranorea]

Gold is an historical value based asset that has got a physical shape. With bitcoin this isn't possible, also with gold common people find it an asset that can be used into all sort of needs due to its local availability. The same isn't possible with bitcoin as it need knowledge to make use of it. With this people who have learned about bitcoin won't think of investing into gold anymore.

[STT]

. Hedging often means paying a premium just in case an adverse event occurs.

There are no historical precedents for a reserve currency collapse of this magnitude, if the USD were to collapse at this point. So gold is a very obvious hedge due to its importance prior to the emergence fiat money. If the fiat system begins breaking down, I believe many states will immediately regress to gold-based money.

I totally agree with that and explains why gold has fallen out of favour, it does nothing important exactly just stays a metal without ever degrading or changing.   People view it as expensive, unproductive and unneeded.   Warren Buffet tells a tale of how stupid humans appear to dig up metals & exspend so much effort only to place it back in the bank vault, right in the ground again.

He is right in a way but gold does have a purpose, every time I read about poltiics its obvious we need to rely on something as simple as gold to regulate value.   We cant have political debt as money like the current system is.

There is historical precedent and I will copy up the link for anyone who wants to listen.    The most recent example is the British Empire, the largest amount of land controlled by any country in history with great wealth all over the world and relevant as it was backed by a gold standard first formulated by Issac Newton.     UK left the gold standard and also lost the empire lands, the currency is well under 1% of its previous value

Heres the ancient example of similar magnitude, Roman empire and failed currency - https://mises.org/library/inflation-and-fall-roman-empire


I'm not pro gold but its necessary, we can skip insurance on a house for similar reason to save money but in the end its needed.   If I thought gold was optional, wasnt inevitable at this time I'd have forgotten it on its last decline but its not that sticker price that matters, as gold determines dollar value not vice versa and so on.   Its a head scratcher

[bitcon]

People will never leave gold in the first place. Aside from you can use it as an accessory its price will still continue to grow in a more stable manner that can still be beneficial for your end you were investing your money on it.

Oh, no, here you are wrong. For most guys that want to make money (big money, sure), gold is in the first place. For them, it is easier to buy precious metal than to work with the cryptocurrencies.

[Naida_BR]

With the current economy, the fears about the Brexit, Italy, the Sino-American problems and the general pessimism among investors; It looks like Gold is coming back the past months. At the same time, countries like the EU, Japan & China are reducing their investments in the economy,
(it should also reduce demand for the USD?)

Even the Central banks are buying more Gold (+13% from the previous year). Economists predict a dark year for 2019 and it seems a lot of large funds are now buying Gold massively. Especially from Asia and Soviets.

You know 2018 was a mysterious year. Even if we faced so many problems such as the ones you have mentioned (Brexit, Itan, etc.) we still underwent a great year with a great growth rate for the global economy. I think that the reason that institutions have started to turn into buying gold in more quantities is the imminent economic downfall that I predict it will happen in 2019.

[spongegar]

Well, gold is always and will always be the, well, gold standard in backing up currency. Though I'm pretty sure that gold was once of little or no value besides accessories.

[yunzau]

yes they will return because gold is an asset for investment that fluctuates with fiat currency and its value is stable.

[joshy23]

People will never leave gold in the first place. Aside from you can use it as an accessory its price will still continue to grow in a more stable manner that can still be beneficial for your end you were investing your money on it.

Oh, no, here you are wrong. For most guys that want to make money (big money, sure), gold is in the first place. For them, it is easier to buy precious metal than to work with the cryptocurrencies.

Gold will always have its value and no one will leave it as a good place for investing your money, a good backup in case economy issue happen, crypto might be another alternatives and those who understand financial investment will keep gold while playing with crypto, diversion and spliting assets but gold will never be forgotten as a priority.

[onrise]

yes they will return because gold is an asset for investment that fluctuates with fiat currency and its value is stable.

I think as an additional source of investment people will buy gold and not as a replacement of crypto cueeency . As it should be in different categories gold and crypto both are good investment options and continue to flurry in coming time as well.

[Silberman]

Will be possible many people back to gold investment, when always got bad moment and lost money with bitcoin investment, they will try back to gold investment and hope get profit there.

the situation sometimes can change nowadays. moreover the state of bitcoin is being so declining, so it makes a lot of people sad, and sometimes they look for other ways to make a profit. moreover they are also afraid of the risk of bitcoin which is increasingly declining.

for those who are afraid of cryptocurrency, gold is an alternative investment. I think as an investor already have a view on investing. and I think the moment is one of the causes

Choosing both will be the best strategy since I am sure that gold will also begin to grow very fast during the next decades, the only problem with holding gold is that the growth could take a long time to manifest itself while in bitcoin a new asset that can be traded more easily than gold the bull markets appear more quickly and with greater intensity.

[valheru]

if the investment is to be made to gold, silver, and so on, more amounts of money must be invested than cryptocurrencies because these mines do not earn as fast and as much as crypto money. Besides, mines offer a more risk-free investment, so large corporations and investors who don't like the risk tend to the mines. in short, it is not a weird situation for people to tend to mines.

[whirlcoin]

if the investment is to be made to gold, silver, and so on, more amounts of money must be invested than cryptocurrencies because these mines do not earn as fast and as much as crypto money. Besides, mines offer a more risk-free investment, so large corporations and investors who don't like the risk tend to the mines. in short, it is not a weird situation for people to tend to mines.

People are still using gold more than Bitcoin because gold is more stable than Bitcoin it will be the main reason for people don't get more attractive with Bitcoin and gold is more fortunate with the people that's why I think a gold is better than Bitcoin

[darefreads]

I'm not a gold investor since I started investing to Crypto but I believed that they just want to get a secure investments by buying some gold. And still gonna invest their left money to Crypto this year of 2019 because as we can see the market is still on the move of making the alue of any currency I that's why it is really hard to know if their investments in those two will gonna grow faster.

[Altero]

I'm not a gold investor since I started investing to Crypto but I believed that they just want to get a secure investments by buying some gold. And still gonna invest their left money to Crypto this year of 2019 because as we can see the market is still on the move of making the alue of any currency I that's why it is really hard to know if their investments in those two will gonna grow faster.

Talking about security,  absolutely gold have it than of bitcoin. The price of gold is continuously growing as its stay longer to us, it could be the same with bitcoin but the big problem with bitcoin is that there is a big chances of getting which couldn't be happen to gold. 

But we are in practical now,  we look for high gaining profits investment  which is presence to bitcoin and that is why people have love it.

[exstasie]

. Hedging often means paying a premium just in case an adverse event occurs.

There are no historical precedents for a reserve currency collapse of this magnitude, if the USD were to collapse at this point. So gold is a very obvious hedge due to its importance prior to the emergence fiat money. If the fiat system begins breaking down, I believe many states will immediately regress to gold-based money.

I totally agree with that and explains why gold has fallen out of favour, it does nothing important exactly just stays a metal without ever degrading or changing.   People view it as expensive, unproductive and unneeded.   Warren Buffet tells a tale of how stupid humans appear to dig up metals & exspend so much effort only to place it back in the bank vault, right in the ground again.

He is right in a way but gold does have a purpose, every time I read about poltiics its obvious we need to rely on something as simple as gold to regulate value.   We cant have political debt as money like the current system is.

Exactly. I think it's a mistake to make everything about an asset's utility. I've seen the argument made that the best forms of money don't have any utility at all because that makes supply unpredictable.

Fundamentally, people need money, and they're always going to choose something. It's easy to view gold production/storage (or Bitcoin mining) as unneeded or unproductive because it has very little intrinsic value or utility. Their biggest value is not intrinsic at all: it has to do with society's faith in them as money.

[nebiki]

if in my opinion to return to gold, yes, because crypto still doesn't have a good change right now, and this seems to be only temporary. but to get rid of crypto investment is not because crypto investment is very promising and to get big profits is easy and fast