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/biz/ - Business & Finance

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19598731 No.19598731 [Reply] [Original]

Why do central banks hold Gold and Diamonds if there's no Gold/Diamond standards?

>> No.19598786

diamonds are worthless

the same reason why niggers wear gold chains, the have to signal wealth

>> No.19598844

>>19598786
>diamonds are worthless
lol
>the same reason why niggers wear gold chains, the have to signal wealth
wut. I hope you're not investing in anything with this logic

>> No.19598925

Gold is an asset that holds an objective practical value outside of speculation.

Gold is used in a lot of tech and has an industrial demand (literally does not corrode at all and is incredibly malleable), making gold innately valuable regardless of anything else, plus there is a finite amount. If they just held pure cash, it would inflate and progressively become worthless.

If you have billions in cash, you can't expect to fully invest all of it at once. You'll have a lot just sitting around, so it makes sense to keep it in a physical form that retains its value for decades.

>> No.19599080

>>19598925
silver has way more industrial use since it's literally the best heat and electric conducting element in existance

silver is more correlated to stocks at 0.3 vs gold 0.02

both are a shit hedge anyways since literally everyone holds it, just hold 10% in crypto which has actual upside

>> No.19599162

>>19598925
You didn't really explain why central banks hold Gold/Diamonds other than its utility in society though. What do the central banks actually do with Gold/Diamonds? Just keep them? Does it sell them? Can I walk into a bank and buy them?

>> No.19599248

Because gold is money

>> No.19599303

>>19598731
Diamonds are worthless
The only reason why they cost so much is because they’re all owned by one company vended through several stores.

>> No.19599347

>>19599248
this. most correct answer

>> No.19599456

>>19599162
> Just keep them? Does it sell them?
yes. yes.
>Can I walk into a bank and buy them?
yes.

>> No.19599476

There is no gold nor diamond standard but there is parity and a very agile market for it. That's why banks hold them. Banks also hold other valuables, bonds, properties and real state, provided there is a market for them.

>> No.19599706

which central bank is holding diamonds?

>> No.19600410

>>19598844
>Diamonds are worthless.
Yes.

>> No.19601270

>>19598731
So their CEOs can retire on some tropical island once they and the Fed render fiat near valueless.

>> No.19601316

>>19599080
>it's literally the best heat and electric conducting element in existance
yes, until it comes into contact with air. Then it's not.

in real life there's air

>> No.19601354
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19601354

>>19599162

>Can I walk into a bank and buy them?
proof in pic, in cucknada i can wal in any td branch and buy/sell metal.
>The only reason why they cost so much is because they’re all owned by one company vended through several stores.
fuck off level 1 plebbit pseudo intellectual.