Gold vs. U.S. dollar

[Rsaint6]

Is there a possibility that can dollar beat the value of gold?

[fiulpro]

I think it cannot for the long term , simply because USD is governed by the particular government and therefore there is a possibility that the system can fail due to some political , social , economical reasons. But when it terms to gold , it's whole value is governed by people all around the world buying it like the staple food , there are countries where it's very common to find gold even in the poorest houses it's their tradition , their religion . I do think gold is more stable market and gives better returns than the USD .

[Rsaint6]

I think it cannot for the long term , simply because USD is governed by the particular government and therefore there is a possibility that the system can fail due to some political , social , economical reasons. But when it terms to gold , it's whole value is governed by people all around the world buying it like the staple food , there are countries where it's very common to find gold even in the poorest houses it's their tradition , their religion . I do think gold is more stable market and gives better returns than the USD .

So its better to invest in gold? thanks for your insight sir.

[20kevin20]

Yes. If everything (economically) stays exactly as it is (including inflation and all), it is possible in some scenarios, although the chances are close to 0.

1. If gold demand decreases radically. I cannot see this happening, but in theory it is possible. The only way I see gold would decrease in demand is if another substance with at least all the properties gold has would be discovered in a very large quantity, hence becoming widely used in comparison with gold.

2. If an immense quantity of gold is discovered. The high price of precious metals comes mostly from scarcity. Therefore, if a huge quantity of gold will be discovered and exploited, it would drive the prices down because it'd be less scarce than today.

Think of Bitcoin: the lower the demand is, the higher the selling power is. A consequence would then be the price. If through a hard fork BTC's max supply would be multiplied by 10 (having then a max supply of 210M instead of 21M), you'd have the same result.

However, 1 and 2 should happen in EXTREME conditions (if gold demand from any collector and factory would decline to all time lows, for example) in order for the value of gold to be of less value than the dollar.

There are other scenarios too, also possible only in extreme conditions ... if there would be a substantial deflation of the USD.. in reality, as I said, the chances of these scenarios to happen is close to 0.

So its better to invest in gold? thanks for your insight sir.

Definitely. Be it precious metals or Bitcoin, they protect you from inflation. The value of gold doesn't change - when gold price rises, it means the value of DOLLAR changes most likely through inflation. In a deflationary scenario, the opposite happens. Gold stays the same, dollar changes.

[coupable]

In addition to what fiulpro said, it's somehow like bitcoin (we refer to it as internet gold) in terms of competitive against US dollar, despite it's volatility which i think it's temporary.
From another approach, bitcoin (exactly like gold) is backed by the community convention to value it and can't be (almost) controlled by governments and big players in the global world market. Let's say that by investing in gold or bitcoin, you avoid big crashes that may occur by betting on dollar value. (I know usd does always look stable but this is based on multiple factors that are not mainly related to his real value)

My reply will not be the same if the us dollar is backed by gold. We all know this is a bad joke .

[thottum]

Actually Gold and US dollar are inversely proportional If USD increases in value with other currencies the price of gold will decrease and vice versa. So if we expect any crisis or an economy slowdown its good to invest in gold if we expect a good run in the economy then consider decreasing the exposure on gold in the portfolio. Always good to have some exposure to gold which will give some stability to the portfolio

[FanatMonet]

Perhaps I did not understand a little what was written in the cap (very uninformative), but the dollar loses to gold, because. for the production of dollars you need linen and cotton, and for gold, you need a field, people, equipment, and in any case, it will be severely limited in supply, because the richest field have already been developed.

[justdimin]

The discussion should be, how much weight of a gold that dollar could surpass? If we are talking about an ounce, it is impossible, if its gram that we are talking about which is about 50 dollars right now, theoretically speaking that is possible but when you look at the reels of life and how any fiat currency has inflation whereas gold has deflation because it has scarcity and the moment you use gold for something irreceivable back that means you are destroying the already small existence of gold which causes it to be more expensive.

So in short, no, there is no way gold can ever be more valuable than gold, there is no way gold could worth more than any sort of commodity including orange juice prices as well because in the end even the most tiny commodity on earth will be more expensive than one dollar.

[Wexnident]

I don't think so? I mean, if you think about it, one side is a store of value, and as long as its rarity is seen by the world, I doubt the Dollar could exceed it. On the other side, we have a currency backed by the government that keeps pushing for economic development that they have accumulated so much debt already. The only possible chance of Dollar exceeding Gold is when certain circumstances happen to Gold, much so that it is shaken so badly that the market decided that the rightful price for it is below that of a dollar.

As for investment, naturally gold. There are also stocks there that could be invested on that are almost at the same level of gold. Naturally, there's BTC, but I'm pretty sure you already know that.

[Febo]

Is there a possibility that can dollar beat the value of gold?

There is no possibility that USD could ever beat Gold.   Gold yearly mining emission is around 1.7% a year.  M1 supply increase of USD in 2019 was 7%  https://tradingeconomics.com/united-states/money-supply-m1    USD is not just M1, but many more.

[avikz]

Is there a possibility that can dollar beat the value of gold?

I think you are looking for insights to invest. If we look for an investor's perspective, it is always better to invest in Gold rather than relying on a currency system which is prone to inflation, while gold is not!

That literally means, the purchasing power of dollar will decrease over time. But the price of gold will adjust based on the inflation and demand-supply cycle. So Gold will always remain as a preferred destination for investors!

[andamarina]

No, cause gold is limited , anyway the dollar can't have so much value cause this will means that coin will denominate, and value way to much more than it should and again will need banks to issue new coins and denominate it.

[Janation]

I think it will not happen.

We mine gold, it is a natural resource that means it is limited. hat means the price of Gold can still increase. In terms of dollars, the Federal Reserve bank is responsible for controlling the money supply in the country. As the price of the US dollar increases, it is because of what is happening but that can't be that fast to change, unlike Gold.

[Vanessamix]

No, cause gold is limited , anyway the dollar can't have so much value cause this will means that coin will denominate, and value way to much more than it should and again will need banks to issue new coins and denominate it.

First of all, Bitcoin is limited and it will be totally mined quite soon (in couple years I believe).
Second of all, Bitcoin has real ways to use and spend it which can't be applied to gold.
I think it is a matter of time when Bitcoin will overcome gold

[abhiseshakana]

Is there a possibility that can dollar beat the value of gold?

The dollar cannot be juxtaposed let alone compared to gold. Dollars are only currencies that can be printed from thin air. A dollar is just a piece of paper that has no intrinsic value written with a certain value. Printing costs plus material prices are not proportional to the value written in the dollar currency.

While gold is a precious metal whose value has been recognized from time to time. gold is used as a symbol of grandeur and glory as well as prosperity. When you hold gold, you hold Tangible Asset that does not depend on others. Tangible Assets in your grasp will become increasingly important when the financial crisis strikes.

So the dollar and gold levels are very different and there is no way the dollar can match or even exceed the value of gold.

[AniviaBtc]

I think it will not happen.

We mine gold, it is a natural resource that means it is limited. hat means the price of Gold can still increase. In terms of dollars, the Federal Reserve bank is responsible for controlling the money supply in the country. As the price of the US dollar increases, it is because of what is happening but that can't be that fast to change, unlike Gold.

Limited natural resources makes the Gold more valuable because we can produce more US dollars, but we can't produce golds. But although possible, it is unnecessary for the government to produce more money because it will money worthless and useless. So as far as I know, gold is more important because its price can be preserved no matter how long you will keep it.  Maybe at some point, its price increases while you're the one who holds it for a long time. US dollars can varies in time so it can go high and low every time. So it is better to invest gold than money because future generation will benefit that in the next years.

[Ucy]

Question is a bit funny. I really doubt fiat currencies (as they currently are) will ever beat Gold. Real cryptocurrencies could beat gold in the future when probably they become more useful, valuable, durable, long-lasting,  deflationary, secure etc. Crypto needs to be backed by special kind of assets to become more useful or valuable.     Fiats would need to become more like real crypto to stand a chance.

[jonatha28]

I think it cannot for the long term , simply because USD is governed by the particular government and therefore there is a possibility that the system can fail due to some political , social , economical reasons. But when it terms to gold , it's whole value is governed by people all around the world buying it like the staple food , there are countries where it's very common to find gold even in the poorest houses it's their tradition , their religion . I do think gold is more stable market and gives better returns than the USD .

Basically yeah. Gold is worldwide and is way less affected by political and social events.

[stompix]

Is there a possibility that can dollar beat the value of gold?

What is longer, one litter of wine or two kilos of oranges?

I wonder why everybody is actually comparing this...
What are we comparing, the value of one dollar vs ..one ounce? one kilogram? one milligram of gold?

If we're still out comparing crazy stuff how about these:
Will the yen beat icecream?
Will the euro beat pork?
Will the pound beat coal?

The dollar cannot be juxtaposed let alone compared to gold. Dollars are only currencies that can be printed from thin air. A dollar is just a piece of paper that has no intrinsic value written with a certain value.

So, you won't say no if I ask you to hand me a hundred of those useless pieces of paper, right?   For free , of course!

[joeperry]

Is there a possibility that can dollar beat the value of gold?

Paper over a gold? Well for so long gold has never lose its value but the government can control the paper money are very prone to inflation that's why in my opinion its better to invest in Gold rather than keeping your USD even though you keep it for a long time its value might decrease while the Gold itself stays gold and its value never losses.

Both have an advantage and disadvantages on their own.