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[DashingAgent]

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[Oshosondy]

Why do people value gold more than money?

Gold is also money because it has value, what you want to say is fiat, be specific.

If more gold is printed then it is not inflation but if more money is printed then how is this inflation?

Fiat is printed and devalued by governments but gold is mined but the demand increased the price, the fiat price decreased by governments is also responsible for increase gold price.

If printing more dollars causes inflation then people should buy cryptocurrency instead of gold and if that happens then gold will be of no value. Once gold loses its value, a surge in currency will not lead to inflation, because then the value of cryptocurrency will exceed gold.

Why not hold both gold and bitcoin, there is nothing bad in that, but I will go for bitcoin first. You said gold are used for jewelry, also used for many other fashion designs, this can not make gold go valueless, people will also still hold gold, but I will consider bitcoin first.

[crwth]

What are you talking about? Gold is not printed; it's mined just like what Oshosondy said. It requires physical energy and equipment to retrieve it efficiently. It has multiple steps process to obtain, whether it's about separating the actual gold from the everyday dirt or anything that gives you Gold. It's the result. There's scarcity in the amount of Gold, but none of it's too little to be significant with fiat.

If you know the history of money or how actual people trade, it's with the use of precious metals that other people might think is worth changing for. In the old times, the trades are happening with different stones or any livestock to buy something. Gold Standard was created to ensure that there's enough value backing fiat. Sadly, it was removed and not active anymore, and they can print even more.

[mu_enrico]

If you are talking about inflation as if in the monetary inflation, yes printing more gold is also inflation. But the key here is the rate. You cannot just print more massive gold "out of thin air." Also, gold is money, and people value hard money more than currency. Bitcoin in the universe without altcoin is even harder money than gold IMO, but the problem is its value has been under dilution by thousand of altcoins. If you value this other cryptocurrency, the supply will be unlimited, just like fiat. Meanwhile, you can't create synthetic gold (yet).

[Findingnemo]

Gold price also will fall if the supply increases or the demand decrease but nothing like that happened for centuries because gold is the most trusted asset to invest at any time but its not really the best at ROI. While talking about the fiat bills its completely different from.gold because government can print any amount they want whereas gold can be only mined as much they available.

[yhiaali3]

My friend, gold is not printed by governments like banknotes, but rather it is extracted from gold mines located in the ground. There are limited quantities of gold that can be extracted from the ground and some countries do not have gold in their territories at all, so the amount of gold is limited and this is what makes it of high value Unlike money, you can print whatever you want from it.
I agree with you that cryptocurrencies are more practical than gold, you can use cryptocurrencies for daily transactions as well as for cross-border financial and commercial exchange, while it is not possible through gold, so we can use gold to maintain the value of assets and use cryptocurrencies instead of paper money in daily transactions and also across borders .

[fiulpro]

Well both of them have values, the fact is it's not only dependent on the market but it's also dependent on the usage and the community as well, for example in India, people can use gold like USS, anywhere, they can exchange it within seconds or even  buy something else with it. But in other countries this asset is more digitalized.
Plus gold is not printed. We know for a fact that the diamonds are controlled by the big companies to make sure their price remains high but gold is more dependent on the mines and the mineral reserve in the particular state or the country so government doesn't really have a big say in it. They can certainly make changes in the way it's traded and make laws about trading etc.. but they cannot go back in time and make entirely new mines for gold. Plus after the rule of Britishers they stole a lot and not the distribution is not just dependent on geography but on other things as well.

[Fortify]

If printing more money is inflation then why printing more gold is not?

Why do people value gold more than money? If more gold is printed then it is not inflation but if more money is printed then how is this inflation? While both are of no use in real life, cryptocurrency is more valuable than gold because you cannot use gold for cross-border transactions. A billionaire may have billions of dollars worth of money, but he can still use a little gold for jewelry. The concept that printing more dollars creates inflation should be eliminated. If printing more dollars causes inflation then people should buy cryptocurrency instead of gold and if that happens then gold will be of no value. Once gold loses its value, a surge in currency will not lead to inflation, because then the value of cryptocurrency will exceed gold.

That opening statement is probably the dumbest thing that I will read all year, so congratulations on that. Gold is not printed, it is dug out of the ground at great expense and in a limited quantity compared to most of rare earth elements. You could place all the gold previously mined into less than three and a half Olympic size swimming pools - approximately 190k tonnes in total (in a very dense metal). The very reason that there used to be a "gold standard" - where currency was pegged to the amount of gold a country owned, meant it was almost impossible to print money because there was a limited supply of new gold that could add to these stockpiles. Nobody has found out the magic way to create gold yet, so that it why it can not be artificially created.

[g-uid]

If printing more money is inflation then why printing more gold is not?

Why do people value gold more than money? If more gold is printed then it is not inflation but if more money is printed then how is this inflation? While both are of no use in real life, cryptocurrency is more valuable than gold because you cannot use gold for cross-border transactions. A billionaire may have billions of dollars worth of money, but he can still use a little gold for jewelry. The concept that printing more dollars creates inflation should be eliminated. If printing more dollars causes inflation then people should buy cryptocurrency instead of gold and if that happens then gold will be of no value. Once gold loses its value, a surge in currency will not lead to inflation, because then the value of cryptocurrency will exceed gold.

good trolling

[Smartvirus]

I don't real get you @OP but the idea of inflation, deflation along with printing of money can't be ignored in the system. Mind you, fiat money can't stay static as per any should be printed because, the human population isn't and so is the available goods both on import and export grounds. So, in other to maintain the value of both fiat and goods, inflation isn't such a bad thing.

Bringing gold into this concept as to having people exchange money for gold, its just value. The value of a thing is got to be expressed in some other thing which which mainly money. It's the way it is!

[The Sceptical Chymist]

OP has no fucking idea what he's talking about, and I could almost swear that his post was written by some kind of text spinning bot that can create paragraphs with certain words and ideas in it.  Does anything like that exist?  If not, there's no excuse for such an astounding display of ignorance.  I'm also pretty sure his merits haven't been earned**edit: I take that back after looking at BPIP**--and he's going on my ignore list pronto.

Assuming OP is just uneducated and simpleminded, I would suggest to him that he start reading about economics to get a grasp on the basics before even thinking about creating threads in the Economics section, because all I see is drivel.  

And he says this:

While both [gold and fiat currency] are of no use in real life, cryptocurrency is more valuable than gold because you cannot use gold for cross-border transactions.

If that's not a face-palming head-slapper, I don't know what is.

Edit:  In the process of putting OP on ignore, I noticed his personal message space filled with this:

So many books, so little time

He might try reading some of them instead of complaining about the lack of time to do so.

[paxmao]

If printing more money is inflation then why printing more gold is not?
...

Honestly, I have never seen a post depicting a lack of understanding so deep and even arguing about physical impossibilities such as "printing gold". On top of that you decide to use bold and large letters. I am keeping this as an example of how not to post.

As I write, I have just seen your personal text "so many books so little time". That explains why you have not read any on these topics.

Anyway, little by little:

- Gold cannot be printed, it has to be either mined and then refined any of the different metallurgic techniques , or found in sunken ships o stolen. Even the last two do not actually create gold. So it is not printed, it is "minted" and that requires WORK. Please keep this in you mind for a moment.

- Bitcoin cannot be printed. It has to be created by mining a block. It requires WORK (hence the "Proof of Work" concept).

These two bitcoin, and gold, cannot be produced cheaply (AKA printed). So they can be inflationary or deflationary, but in any case the supply is severely restricted, so even with moderate increases in demand the price rises quickly, so is safe to say that in general they are deflationary respect to fiat and to other goods. There is an scenario in which bitcoin would be inflationary (or gold) and that would be if the demand drops sharply. In fact, sometimes bitcoin has inflationary stages when the price has gone very high very quick and all the sudden drops.

- Fiat and currencies in general require little effort to be produced (AKA printed). They can be inflationary or deflationary. In fact, Japan had some deflationary periods that caused mayhem in the economy. Anyway, fiat is usually inflationary because is under the control (more or less direct) of Governments. It is just too easy to inject money in the economy producing a temporary growth in the economy, but it does not end up well if sustained in time.

Well, I hope this helps you understanding the world. For further reading, search inflation and causes in any search engine of your choice as well as "fiat money".

[carlfebz2]

If printing more money is inflation then why printing more gold is not?

If you have made out some very basic comparison about the two then i dont see for this question to be relevant or totally non sense at all because all of us do know that gold cant be printed out and this isnt fiat

money that you could simply produce out via printer and viola, it would add up on the entire circulation and come to think on how hard to get gold itself which is a natural mineral that can be found on earth.

It does have monetary value but doesnt mean that it would be automatically gets on its full properties which is totally shit if you do ask me.

[dark1234]

If printing more money is inflation then why printing more gold is not?

If you have made out some very basic comparison about the two then i dont see for this question to be relevant or totally non sense at all because all of us do know that gold cant be printed out and this isnt fiat

money that you could simply produce out via printer and viola, it would add up on the entire circulation and come to think on how hard to get gold itself which is a natural mineral that can be found on earth.

It does have monetary value but doesnt mean that it would be automatically gets on its full properties which is totally shit if you do ask me.

I totally agree with you.... maybe the OP doesn't understand the meaning of the two, as we know that in the mines, it's in the form of pure seeds, which will be shaped according to market demand and the prices that follow and this is not a manufacture or gold printing is like money whose price / nominal can be determined so that when you make more even with a very large nominal it will create inflation and this is clear

[hatshepsut93]

Inflation means the growth of prices due to the loss of value of currency. Since no one is using gold as a currency, even if its value was decreasing due to increased supply, it won't cause inflation.

Bitcoin can't fully replace gold as store of value, because they have different properties. Being physical or digital can both be advantage or disadvantage in different situations. And in some point in the future Bitcoin will finally reach "moon" and it will start behaving more like gold with small yearly gains.

[Hydrogen]

If printing more money is inflation then why printing more gold is not?

Fundamental supply and demand.

The supply of fiat can be expanded and printed in higher volume. This expansion can be achieved easily without obstacles. Increasing supply, while demand remains constant, generally reduces the value of a thing. (Higher volatility than gold.)

The supply of gold can only be increased by mining it from the earth. This expansion is much more difficult to achieve. Supply doesn't shift as drastically or severely as printed money. (Lower volatility than fiat.)

Supply of cryptocurrencies like bitcoin, could be even harder to expand than gold. Due to it being algorithmically limited. As Steve Jobs once said, better methods to extract gold from the earth will be devised as technology improves. While bitcoin's mining difficulty will never be overcome, no matter how much the technology of ASICS or GPUs advance.

[Darker45]

It seems you are raising a number of issues. Anyway, a couple of points:

• Money printing does not necessarily cause inflation. It is also not the main reason for inflation. Also, inflation is not to be entirely avoided.
• Gold's use is not solely limited to its being a store of value. You're definitely wrong in saying gold has no use in real life. Gold is important in electronics, for example. Therefore, gold and cryptocurrency are not really competing against each other within a single market such that people have always the option to either go for gold or crypto.

[rosenbauer02]

It's all about supply and demand and you already know it in my opinion. Even if the government print more money it does not mean the value will inflate. If you compare money(fiat) to gold, money won't survive for too long as it will get old and torn apart if not very careful while gold is still intact. Anyways, that is just one of the reasons why people value gold more than money.

[Wexnident]

Did you just really assume that gold was something that anyone with power could produce? Anyhow, on the topic of why people choose one over the other is simply because of the rule of supply and demand. Fiat supply is known to be controlled/regulated by the government, while crypto is set in stone, and while taking into account that the more quantity of something has, the lesser value it would have (unless, ofc, the demand for it is continuously increasing together with the supply).

If printing more dollars causes inflation then people should buy cryptocurrency instead of gold and if that happens then gold will be of no value.

Well if everyone had the same mindset as you then it may happen to be as such. But no, people still have that demand for gold, so it's value wouldn't necessarily go down just because some people think that cryptocurrency is better.

[Argoo]

Gold is not printed, it is mined and its extraction is very costly, because on our planet it remains only in hard-to-reach places. Therefore, it is impossible to dramatically increase its reserves. In addition, unlike paper money, which in itself is of no value, gold itself, as a rare metal and jewelry, is of great value. Therefore, an increase in its production within the limits of the reserves of our planet does not lead to its noticeable depreciation. However, if we assume that in the future gold can be delivered from space, then an increase in its amount can also lead to its depreciation.