/biz/ - Business & Finance

>>58275593
Listen here, you Oompa Loompa. If enough people are interested in buying gold and attempt to do so, the demand curve goes up. If the demand curve goes up, supply goes down. If demand goes up while supply goes down, the price of gold goes up. If the price you bought gold is significantly different from the price at which you sell gold, and the price you sell is more than the price you bought it at, you make what is known as capital gains. It doesn't require the entire world economy to collapse. Additionally, if your country ever enters a recession in which there is a deflation in the value of US dollars, the value of gold will begin to go down while the value of the dollar begins to go up. In such a situation, it is a good idea to exchange your bought gold for dollars, since you want to sell high and buy low in order to make a profit. This is a fundamental principle of economics and trade. Gold is only valuable if
a.) the dollar continues to inflate, decreasing the value of the dollar
b.) the world economy continues to exist as a market
Your gold has exactly no value if inflation doesn't happen or there is a market collapse. What I'm saying is that inflation is a good thing when it comes to buying anything, since the value of it will go up over time like any other stock. The only difference with gold is that it is a physical commodity (a unit of money) as opposed to a stock commodity. If you think that investing in gold is going to save you from stock market collapse, you are talking crazy.