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/
Donate to SNBCHF.com
Donate to SNBCHF.com Via Paypal or Bitcoin To Help Keep the Site Running
Please consider making a small donation to Snbchf.com. Thanks
Bitcoin wallet: bc1qa2h6hgd0xkuh7xh02jm5x25k6x8g7548ffaj3j
Receive a Daily Mail from this Blog
Live Currency Cross Rates
On Swiss National Bank
-
USD/CHF stays above 0.9100 nearing the highs since October
11 days ago -
SNB Sight Deposits: increased by 3.4 billion francs compared to the previous week
17 hours ago -
Pound Sterling falls back as upbeat US Retail Sales strengthen US Dollar
11 days ago -
Canadian Dollar remains vulnerable after strong US Retail Sales
11 days ago -
2024-04-09 – Martin Schlegel: Interest rates and foreign exchange interventions: Achieving price stability in challenging times
17 days ago
Main SNB Background Info
-
SNB Sight Deposits: increased by 3.4 billion francs compared to the previous week
17 hours 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
-
Did the MMT Camp Correctly Predict the Post-Covid Economy?
-
Word of the Day: Performative
-
In diesen Städten sind die #Mieten am stärksten gestiegen #wohnen #shorts
-
5 Entscheidungen, von denen Dein Wohlstand abhängt
-
Bayer Hauptversammlung: Damit müssen Aktionäre jetzt rechnen!
-
Chapter 9. From Taxes to Trade, More Secession Means More Freedom
-
Woods Exposes the Federal Reserve System
-
Increase of 1.7% in nominal wages in 2023 and 0.4% decline in real wages
-
SNB returns to quarterly profit thanks to Swiss franc weakness
-
The Danger of the West’s Neglect of Individual Rights
More from this category
- Did the MMT Camp Correctly Predict the Post-Covid Economy?
26 Apr 2024
- Word of the Day: Performative
26 Apr 2024
- Help Us Publish These Three New Books
26 Apr 2024
- Low Time Preference Leads to Civilization
26 Apr 2024
- Opposing Military Intervention: Loving Dictators or Hating War?
26 Apr 2024
- Retail Sales Data Suggests A Strong Consumer Or Does It
26 Apr 2024
- What Is the Purpose of Economic Theory?
26 Apr 2024
- Kentucky Becomes 45th State to End Sales Taxes on Gold and Silver
25 Apr 2024
- Javier Milei vs. the Status Quo
25 Apr 2024
- The Problem with Microlibertarianism
25 Apr 2024
- Why the West Is Giving Up on Individual Rights
25 Apr 2024
- The Danger of the West’s Neglect of Individual Rights
25 Apr 2024
- SNB returns to quarterly profit thanks to Swiss franc weakness
25 Apr 2024
- Increase of 1.7% in nominal wages in 2023 and 0.4% decline in real wages
25 Apr 2024
- Woods Exposes the Federal Reserve System
25 Apr 2024
- Driver’s Licenses Waive Personal Responsibility and Contribute to Disorder on the Road
24 Apr 2024
- Privatize Driver’s Licenses
24 Apr 2024
- Chapter 12. When It Comes to National Defense, It’s More than Size that Matters
24 Apr 2024
- Chapter 10. If California Secedes, What Happens to Locals Who Opposed Secession?
24 Apr 2024
- Chapter 7. A Brief History of Secession Plebiscites in Europe
24 Apr 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