Increasing dominance of gold

[hyudien]

Is gold more stable? Don't talk nonsense. It can fall in price just as much as other speculative instruments. What's especially dangerous is that it has incredibly strong volatility. Large amplitude fluctuations during the day. It takes out stop orders in no time.

I remember the moment when I was trading gold. So, it fell in price for almost 6 months in a row. This wiped out my entire deposit, which was more than 1k dollars. This really shook me. I didn't think that such a thing could happen.

Although gold is included in the low risk category in terms of investment and is considered a safe haven asset, in gold trading it can cause losses. The volatility of gold prices can cause major losses if not managed properly, just like what you experienced, therefore this is where risk management is important, I usually use stop loss and set position size so that even if my trading activity does not match my expectations, I do not experience too much loss and I always apply this in trading, besides that as far as I remember, in 2011-2015, gold prices fell by 45% due to rising interest rates, so indeed both in investment and gold trading still contain risks that must be anticipated.

[summonerrk]

Is gold more stable? Don't talk nonsense. It can fall in price just as much as other speculative instruments. What's especially dangerous is that it has incredibly strong volatility. Large amplitude fluctuations during the day. It takes out stop orders in no time.

I remember the moment when I was trading gold. So, it fell in price for almost 6 months in a row. This wiped out my entire deposit, which was more than 1k dollars. This really shook me. I didn't think that such a thing could happen.

Although gold is included in the low risk category in terms of investment and is considered a safe haven asset, in gold trading it can cause losses. The volatility of gold prices can cause major losses if not managed properly, just like what you experienced, therefore this is where risk management is important, I usually use stop loss and set position size so that even if my trading activity does not match my expectations, I do not experience too much loss and I always apply this in trading, besides that as far as I remember, in 2011-2015, gold prices fell by 45% due to rising interest rates, so indeed both in investment and gold trading still contain risks that must be anticipated.

Absolutely right, and in the country where I live, gold can only be bought in official state banks, and they take great advantage of this, as if they had merged into one Monopoly.
And the whole difficulty of successful gold trading is that banks give a huge spread on buying and selling gold from them.
The spread between the rates is 11% and for me it's just a huge gap.
That is, if you entered into a deal, you would only reach zero profitability when the price increases by 11%.

[Minor Miner]

Is gold more stable? Don't talk nonsense. It can fall in price just as much as other speculative instruments. What's especially dangerous is that it has incredibly strong volatility. Large amplitude fluctuations during the day. It takes out stop orders in no time.

I remember the moment when I was trading gold. So, it fell in price for almost 6 months in a row. This wiped out my entire deposit, which was more than 1k dollars. This really shook me. I didn't think that such a thing could happen.

It sounds like you are talking about trading gold on the forex market and not investing in physical gold. I don't think it's correct to use gold's volatility in the forex market to measure and evaluate gold's volatility. Since forex trading involves leverage, the higher the leverage ratio, the greater the price fluctuations. The volatility of 1:100 leverage will be completely different when you use 1:1000 leverage.

Gold is still volatile but when compared to bitcoin gold, stocks...other speculative assets gold is much more stable. It is not without reason that governments consider gold as the only safe haven and the first choice to protect their economies. Gold is the most stable, safe and reliable asset.

[DanWalker]

in 2011-2015, gold prices fell by 45% due to rising interest rates, so indeed both in investment and gold trading still contain risks that must be anticipated.

As far as I know, gold had a market cap of 10 trillion in 2011-2015 before it was dumped and pulled down to just over 5 trillion. This is indeed a big drop as gold is considered a safe haven. But that further shows that even a safe haven like gold can be dumped and lose more than 45% of its value. Speculative assets like bitcoin, with their relatively young age and market capitalization of $1 to $2 trillion, they will face greater risks than we think. The worst things we never believed would happen to bitcoin could happen one day.

Therefore, we must be more careful and not be subjective with speculative investments like bitcoin.

[STT]

The price fell and the asset remained, some buyers want the price to fall because it only means they receive more and exchange less for the same amount of gold.  Same is said of BTC sometimes as its the same principle, dollar price moving about is frequently nonsense and a reflection of politics with no real worth beyond taking the economy hostage to pay govenments bills.

China has been buying gold gigantically for 25 years now, they started off this century as a new entrant to world free trade and with absolutely no gold in reserve.  Russia has kept gold for generations but China is famous for destroying its own nation and people so they had no gold and so therefore a giant reliance on Dollar for its foreign reserves.
  The largest buyer in the world every year is China, the largest producer replacing South Africa long ago with their naturally high geological reserves.   In future years it wont change China is king of gold and rare earths I think which is giving them strategic advantage that is far superior to discussions on price, especially a price in dollar which we know is in decline continually by design.

  Since China can and will likely goto war with a large part of the planet at some point declaring they own the south China sea and all nations within it is a serious statement to them and also could lead to millions of deaths for any who disagree.
  China cannot wage war while holding Dollar debt as their main reserve asset, Russia has the same policy of invading countries destroying families living their for a profit, they have no intention to rely on dollar but instead hold gold and have profited from the current rises to many billions I believe, similar to the oil price rises during the Ukraine first invasion etc.

It has been a real mistep for USA to not recognize how much influence they had from this global reserve position gifted to them for decades.   It is of great benefit to have this status, many envy such a place in world trade.  To have to mine gold instead would be far harder work but probably of global benefit for fairer division of power more equally; unfortunately I think China already started this race decades ago with a silenced pistol instead of a starter gun, they do appreciate gold being under valued.

  Correct value in gold markets if dollar falls as a reserve to near zero like Sterling was #1 then not is probably as high as 10,000 per troy ounce which most including myself find hard to believe but thats how massive dollar is in trade now, swap it out and gold should be that high probably.

[tygeade]

Until recently, gold was considered a safe haven currency, unlike cryptocurrencies, which were considered a rather risky asset, but recently the price of gold has risen so much that it has become unsafe to invest in it, because there is a simple law that if an asset is expensive, then when investing in it, it can collapse at any time.
At the same time, everyone continues to invest in gold because they don’t know any other way to save their money.

Gold is still considered a safe haven because, in the long run, the price of gold has consistently increased. According to TradingView, the price of gold has grown 5% in the last 5 days, 10% in a month, 24% within 6 months, 41% in a year, and 100% in 5 years. This proves that the price of gold mostly appreciates in the long run, and short-term volatility doesn't affect that. This is the reason why people consider gold as a more stable way of storing their wealth, because they know their money isn't going to lose value overnight, unlike Bitcoin, which can have very quick price changes.

Other than that, gold has also been around for centuries, and for that reason, most people trust it more than assets that have come barely two decades ago, such as Bitcoin and cryptocurrencies. Bitcoin is the choice of those who want quick profits, but gold is the choice of those who want steady long-term profits and an intact value for the money they invest in it.

[Fortify]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

Countries have always used gold to diversify their foreign reserves - among many other assets it gives some credibility to their own currency. At the moment we see a massive upheaval in the world economic order because of the erratic actions of the US president, he has done a lot of damage to the US dollar in the last few weeks which has traditionally been the "flight to safety" currency. Gold might continue to rise steadily, because there is a finite supply of it and it actually has industrial uses alongside cultural demand. If the government of big countries have decided to start moving their money into gold, it will effect the consumer market because there will be a competition for those limited supplies.

[Abiky]

Gold is still considered a safe haven because, in the long run, the price of gold has consistently increased. According to TradingView, the price of gold has grown 5% in the last 5 days, 10% in a month, 24% within 6 months, 41% in a year, and 100% in 5 years. This proves that the price of gold mostly appreciates in the long run, and short-term volatility doesn't affect that. This is the reason why people consider gold as a more stable way of storing their wealth, because they know their money isn't going to lose value overnight, unlike Bitcoin, which can have very quick price changes.

Other than that, gold has also been around for centuries, and for that reason, most people trust it more than assets that have come barely two decades ago, such as Bitcoin and cryptocurrencies. Bitcoin is the choice of those who want quick profits, but gold is the choice of those who want steady long-term profits and an intact value for the money they invest in it.

Gold is stable alright. But returns aren't as much as Bitcoin in the long term. Investors want a greater ROI, so they will choose Bitcoin instead. Some will choose only Gold because of its "high level of trust". Such mindset will change in the future as the world transitions into the digital era.

Eventually, Gold will lose investor appeal as focus is shifted into jewelry and electronics. Gold's increasing dominance these days is only temporary. Bitcoin will replace it as the world's next "Digital Gold". Who knows how long will it take for this to become a reality?

[AmoreJaz]

Countries have always used gold to diversify their foreign reserves - among many other assets it gives some credibility to their own currency. At the moment we see a massive upheaval in the world economic order because of the erratic actions of the US president, he has done a lot of damage to the US dollar in the last few weeks which has traditionally been the "flight to safety" currency. Gold might continue to rise steadily, because there is a finite supply of it and it actually has industrial uses alongside cultural demand. If the government of big countries have decided to start moving their money into gold, it will effect the consumer market because there will be a competition for those limited supplies.

Gold up until today is still one of the tangible reserves that a country can hold and serves as part of their assets. I believe it is one of the oldest assets that most countries all holding onto. We can only assure that people as well as countries can hold this tangible asset but we don't know  what the future holds in terms of possessing tangible assets.

Until recently, gold was considered a safe haven currency, unlike cryptocurrencies, which were considered a rather risky asset, but recently the price of gold has risen so much that it has become unsafe to invest in it, because there is a simple law that if an asset is expensive, then when investing in it, it can collapse at any time.
At the same time, everyone continues to invest in gold because they don’t know any other way to save their money.

We can say, gold is still one of the tangible assets that a country can own up until today. Every country has vested interest on this asset and it is always part of their list of assets. The more gold that a country have, the better for them to beat financial hurdles happening around the world. For a regular person, gold is still one of the go-to when it comes to tangible asset.

[SATWAT]

Gold is still considered a safe haven because, in the long run, the price of gold has consistently increased. According to TradingView, the price of gold has grown 5% in the last 5 days, 10% in a month, 24% within 6 months, 41% in a year, and 100% in 5 years. This proves that the price of gold mostly appreciates in the long run, and short-term volatility doesn't affect that. This is the reason why people consider gold as a more stable way of storing their wealth, because they know their money isn't going to lose value overnight, unlike Bitcoin, which can have very quick price changes.

Other than that, gold has also been around for centuries, and for that reason, most people trust it more than assets that have come barely two decades ago, such as Bitcoin and cryptocurrencies. Bitcoin is the choice of those who want quick profits, but gold is the choice of those who want steady long-term profits and an intact value for the money they invest in it.

Gold is stable alright. But returns aren't as much as Bitcoin in the long term. Investors want a greater ROI, so they will choose Bitcoin instead. Some will choose only Gold because of its "high level of trust". Such mindset will change in the future as the world transitions into the digital era.

Eventually, Gold will lose investor appeal as focus is shifted into jewelry and electronics. Gold's increasing dominance these days is only temporary. Bitcoin will replace it as the world's next "Digital Gold". Who knows how long will it take for this to become a reality?

Change of mindset is surely important but here few other things also having trouble for many while they are thinking about bitcoin Gold is surely having many places to stock but in Bitcoin losing of password is also hurting badly.
I personally invited few peoples, but sadly few ended on worst as they lost their wallet access and now having nothing to do with their coins. Need giving awareness and education about this also important because this can give better understanding which is going to increase confidence of investors instead of going for anything else if community can give some better guidelines this is most important.
Gold could be stayed at top for many decades because its dominance is not new it's around for centuries even future is looking not as past but still its looking not challengeable.

[shinratensei_]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

Countries have always used gold to diversify their foreign reserves - among many other assets it gives some credibility to their own currency. At the moment we see a massive upheaval in the world economic order because of the erratic actions of the US president, he has done a lot of damage to the US dollar in the last few weeks which has traditionally been the "flight to safety" currency. Gold might continue to rise steadily, because there is a finite supply of it and it actually has industrial uses alongside cultural demand. If the government of big countries have decided to start moving their money into gold, it will effect the consumer market because there will be a competition for those limited supplies.

Can't deny most of people already thinks of credibility when it comes to gold, but is it finite though? it's considered finite because we rarely found gold mine, but even asteroid contains gold. until space exploration possible, it will stay finite I guess, but I don't know when human can mine asteroid or even other planet.
On the other hand, bitcoin is secured by math, can't be replicated and supply is capped. Countries need to start looking at BTC and consider it as a reserve.

[Abiky]

Can't deny most of people already thinks of credibility when it comes to gold, but is it finite though? it's considered finite because we rarely found gold mine, but even asteroid contains gold. until space exploration possible, it will stay finite I guess, but I don't know when human can mine asteroid or even other planet.
On the other hand, bitcoin is secured by math, can't be replicated and supply is capped. Countries need to start looking at BTC and consider it as a reserve.

I knew it. Gold was a scam all along. There are plenty of it available for everyone (if what you say about the asteroids is true). On top of that, countries are suddenly discovering new Gold deposits (China, El Salvador, etc). Gold's position as a "store of value" could be ending soon. Bitcoin, on the other hand, has a fixed and predictable supply of no more than 21m coins.

Some say Bitcoin's supply can be changed, but that requires a consensus of a supermajority of nodes and miners for it to be approved. I doubt the community would want to mess with Bitcoin's scarcity. Hopefully, BTC will replace Gold in the future. The "party" is just getting started. Just keep growing your stack of Bitcoin and forget about the rest.

[G_Besar]

I knew it. Gold was a scam all along. There are plenty of it available for everyone (if what you say about the asteroids is true). On top of that, countries are suddenly discovering new Gold deposits (China, El Salvador, etc). Gold's position as a "store of value" could be ending soon. Bitcoin, on the other hand, has a fixed and predictable supply of no more than 21m coins.

Some say Bitcoin's supply can be changed, but that requires a consensus of a supermajority of nodes and miners for it to be approved. I doubt the community would want to mess with Bitcoin's scarcity. Hopefully, BTC will replace Gold in the future. The "party" is just getting started. Just keep growing your stack of Bitcoin and forget about the rest.

Gold remains the best commodity that is always hunted and a reference for everyone, although there are different opinions, in my opinion gold still shines even in the mud. And I also do not deny Bitcoin which is also a prima donna in itself when technology has truly been able to dominate the corners of the world.