this post was submitted on 08 Dec 2025
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No Stupid Questions

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I know people out there who have invested a lot in gold under the belief that in the event of like complete societal collapse or hyperinflation, they could use it for purchasing.

I have the hunch it's a scam, but I haven't learned enough monetary theory, business, or economics to understand why.

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[–] muntedcrocodile@hilariouschaos.com 20 points 3 days ago (1 children)

People buy gold cos it just keeps going up. But here is the truth. Gold doesn't go up, the dollar goes down.

[–] Trex202@lemmy.world 5 points 3 days ago (4 children)
[–] RamRabbit@lemmy.world 13 points 3 days ago

Pretty much. Gold is a time-tested store of value. But it is not a solid investment. (stores of value and investments are not the same thing)

[–] pinball_wizard@lemmy.zip 6 points 3 days ago

So gold is inflation-proof?

Yes, but only to the extent that you can store it, defend it and find a buyer when needed.

Gold loses value at exactly the rate of the cost of the armed guards you are paying to keep it from being stolen.

Pay too little, and it takes its value to someone else who is better armed or sneakier.

And if someone set aside gold for you that you have never seen, no they didn't.

[–] eightpix@lemmy.world 1 points 3 days ago

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

In August 1976, gold was $35/oz, close to its historical level. By October 1979, it was $380/oz, over 10× increase — peaking (for the 20th c.) in January 1980 at $668/oz.

20× return in 3.5 years.

Gold doubled again in value by December 2010, and again by January 2025 — to $2800/oz.

The all-time high, 20 October 2025, $4377.58/oz.

125× return in under 40 years.

I've seen it said: it's not that gold has gotten more expensive. Its that the USD is debased as a currency against the dollar. The gold standard for USD ended in August 1971.

No its not, because going up in value means its inflating because the base currency you are pegging its value to is also inflating.