Originally posted on 09/22/2020:

Quote Originally Posted by d2bets View Post
But what exactly is inherently valuable about gold? What does it do? It doesn't feed you or power an engine. I've never quite understood. I know it's shiny and people like it, but what is guaranteed about its value?
Its store of value is the principal utility today - it started because of its scarcity and value in jewelry making.

Here's a quick demonstration of how gold stores value:

In ancient Rome, an ounce of gold could get a man a fine hand tailored suit. (Toga or whatever constituted a suit - but it could) ...

In 1935, an ounce of gold might trade for $35 in paper money. Also, in 1935 $35 could buy you a fine hand tailored suit.

NOW ... let's say in 1935 you left that ounce of gold and $35 in cash in a drawer - and then opened the drawer in 2020.

Your ounce of gold could trade for @ $1900 and buy you a beautiful suit, but that $35 in fiat could only get one dry cleaned.

- hope you get the drift with that story, but my personal feeling is gold is that perpetual store of value rather than an investment per se. I suppose people could invest in gold for relative value, but personally I think the right time to buy gold is when you've already made your money and want to preserve it with minimal risk.