Home › 6a) Gold & Monetary Metals › 6a.) GoldCore › Gold is Boring – That’s Why You Should Own It!
Permanent link to this article: https://snbchf.com/2021/11/flood-gold-why/
Receive a Daily Mail from this Blog
Live Currency Cross Rates
On Swiss National Bank
-
USD/CHF slides to test 0.8645 support with US inflation data on tap
2 days ago -
USD/CHF Price Prediction: Gaps higher at open, uptrend remains intact
5 days ago -
Gold price remains on the defensive below $2,748-2,750 hurdle amid positive risk tone
6 days ago -
SNB Sight Deposits: decreased by 4.9 billion francs compared to the previous week
5 days ago -
USD/CHF hovers around 0.8650, upside likelihood appears possible as the US election looms
9 days ago
Main SNB Background Info
-
SNB Sight Deposits: decreased by 4.9 billion francs compared to the previous week
5 days ago -
The Secret History Of The Banking Crisis
2017-08-14 -
SNB Balance Sheet Now Over 100 percent GDP
2016-08-29 -
The relationship between CHF and gold
2016-07-23 -
CHF Price Movements: Correlations between CHF and the German Economy
2016-07-22
Featured and recent
-
Banker-Portfolio: US-Fokus zu hoch? 🤔
-
Udo Lindenberg: Cancel-Versuch scheitert krachend!
-
Diese Amex Funktion verdoppelt deine Punkte!
-
Bitcoinkurs & Co. aktuell: So steht es am Nachmittag um die Kurse der Digitalwährungen
-
Swiss to reduce administrative burden on farms from 2026
-
November 2024 Monthly
-
Bitcoin hat seit einigen Tagen erneut die 70.000-Dollar-Marke überschritten… #bitcoin
-
Novartis CEO: ‘Our strategy is bearing fruit’
-
Crash: Erste NOTFALL-Zahlung am Haushaltsausschuss vorbei!
-
Kryptowährungen im Oktober 2024: Die Performance von Bitcoin, Ether & Co.
More from this category
- Bitcoinkurs & Co. aktuell: So steht es am Nachmittag um die Kurse der Digitalwährungen
2 Nov 2024
- Swiss to reduce administrative burden on farms from 2026
2 Nov 2024
- November 2024 Monthly
2 Nov 2024
- Novartis CEO: ‘Our strategy is bearing fruit’
2 Nov 2024
- Kryptowährungen im Oktober 2024: Die Performance von Bitcoin, Ether & Co.
2 Nov 2024
- US Job Report may Offer Little Relief ahead of Next Week’s US Election and Meetings by Half of the G10 Central Banks
1 Nov 2024
- Switzerland wants more trade with China despite US-Chinese tensions
1 Nov 2024
- USD/CHF slides to test 0.8645 support with US inflation data on tap
31 Oct 2024
- Gold Is Back—And So Is Judy Shelton
31 Oct 2024
- Ueda Lifts Yen, Stocks Slump, Gilts Under Pressure Post-Budget
31 Oct 2024
- Swiss central bank posts CHF62.5bn profit
31 Oct 2024
- The Reactionary Containment in the 2024 Election
31 Oct 2024
- How Intellectual Property Laws Stifle Innovation
31 Oct 2024
- Trump-Faktor und Marktbedingungen könnten für neuen Bitcoin-Rekord sorgen
31 Oct 2024
- Is Social Media Actually "Media," Or Is It Something Else?
30 Oct 2024
- US Treasury sanctions two Swiss lawyers for aiding Russian clients
30 Oct 2024
- Government vs. Crypto: Who Controls the Future?
30 Oct 2024
- Experts pessimistic about the Swiss economic outlook
30 Oct 2024
- Why Shouldn’t Foreign Regimes Try to Influence U.S. Elections?
30 Oct 2024
- The Regime Thinks Free Speech is “Fanaticism”
30 Oct 2024
Gold is Boring – That’s Why You Should Own It!
Published on November 4, 2021
Stephen Flood
My articles My videosMy books
Follow on:
Gold and silver price actions have been the opposite of dramatic for months now, they have been boring. In the last 100 days, gold has moved sideways in the US$100 range between $1725 and $1825.
Silver had a similar experience moving in a US$5 range between $21.50 and $26.50. These ranges are quite small when compared to exciting moves in Tesla shares and cryptocurrencies such as Shiba!
Some people think that being boring this year means we should not own the precious metals at all because it means missing out on exciting things happening everywhere else.
However, this week we’re going back to basics for a refresher about why humanity loves silver and gold, doing so for thousands of years.
The Science Behind Gold
The facets of science that make precious metals valuable, and well – precious; are things that neither bitcoin nor Tesla shares can compete with.
So, we’re going to talk about the science of where gold comes from. And no, we are not talking about mining companies!
We love gold because it comes from stars. Literally, gold is only made in the explosion of massive stars colliding with one another (aka, the “Big Bang Theory”), Read more on the topic.
Only something epically dramatic and powerful like neutron star collision explosions could create the energy required to inject extra neutrons into heavy elements which make the element even heavier and change it from something like iron into gold.
These explosions also spread and scatter the newly formed gold atoms across the universe.
Before becoming gold, the iron was already stable and heavy, after becoming gold it is chemically perfect such that it doesn’t need to react with any other element, the ultimate leveling up!
Copper needs oxygen which is why it rusts into a green colour. Gold needs nothing and is chemically inert. This inertness is why gold is loved, it is permanent, its shine is permanent.
Why We Still Love Gold
Gold found under Stonehenge which had been formed into a dagger over 4,000 years ago. It turns out that the gold of that dagger came from mines in Ireland.
Gold is unique for another reason. You can divide gold over and over again into smaller and smaller pieces but none of those pieces are valued any less than a larger piece on a per weight basis.
Yes, this sounds complicated but think about the largest diamond you’ve ever seen, now if we cut that large diamond into five smaller diamonds does the price of the five smaller diamonds still add up to the price of that one large diamond?
No, it does not. Larger diamonds are worth far more than small diamonds. But with gold and silver, they can be divided into smaller and smaller items without becoming cheaper per ounce.
This is why gold and silver have been used as currency for thousands of years while diamonds are not used as currency by any country. No one wants a currency that loses value when you try to make a change!
Gold is rare on earth for three main reasons:
So, what would you pay to own the only thing in the universe that is permanent? Because that is what you’re buying when you buy gold!
Although it might not be exciting bitcoin, gold and silver have stood the test of time and value. In comparison, you will have a really hard time leaving your Bitcoin to your grandchild.
This means that being boring is part of what gold is supposed to do, the price grinds higher over the years but does not need crazy volatile excitement to prove itself or to draw a crowd of investors.
Full story here Are you the author?Follow on:
No related photos.
Tags: Commentary,Featured,Gold,gold and silver,gold forecast,gold news,gold price,gold price analysis,gold price forecast,gold price news,gold price prediction,gold price today,inflation,News,newsletter,silver