| ▲ | consp 3 hours ago |
| No, but "removing" around half of it from one place is quite a bit. Though I doubt any single physical kg ever moved more than a few meters to the buying countries vault. edit: They physically moved 27 tons, the rest was traded away and bought again in London. |
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| ▲ | dmurray 8 minutes ago | parent | next [-] |
| If they sell enough of it in the US and buy enough in London, traders who take the other side of that position will physically move it to London. That's exactly the service the commodities markets provide: they will absorb a small trade without anyone incurring the costs of shipping precious metals, and they know who to call to get it shipped once there's enough supply/demand imbalance to make shipping it worthwhile. |
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| ▲ | 2 hours ago | parent | prev | next [-] |
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| ▲ | TheRealPomax 44 minutes ago | parent | prev | next [-] |
| That's the fun thing about gold. It's literal gold, not numbers on a spreadsheet. Moving it really means moving it: bars are stamped and owned, and if the owner wants to move them, those bars need to get transported to wherever the owner says they should be. It's also the idiotic thing about gold, a metal that has no more or less inherent monetary value than a fiat currency =) |
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| ▲ | NhanH 4 minutes ago | parent | next [-] | | Currency is inherently about trust: you believe it can be traded later for goods. The mechanism with fiat is that you need to trust your state and government. In gold, you trust that everyone is believing gold has value. And that it is commmon knowledge (in the logic sense [0]) Saying that gold has no more or less inherent monetary value than fiat currency assuming a magic wand that can change a large percentage of people's belief. [0] https://en.wikipedia.org/wiki/Common_knowledge_(logic) | |
| ▲ | Isamu 8 minutes ago | parent | prev | next [-] | | >inherent monetary value I agree, the price of gold depends on demand like everything else. Although gold just has some inherent utility value in addition to scarcity that makes it less likely for the price to go to zero, other stuff like cryptocurrency have only scarcity and can go to zero much more easily. | |
| ▲ | lotsofpulp 16 minutes ago | parent | prev [-] | | That is the non idiotic thing about gold, since it is not fiat, is not easy to produce, and it is easy to verify, it can be used as a currency in less stable times/places. It’s a redundancy. Perhaps bitcoin satisfies many of these properties without the high costs to secure and move gold, but it needs electricity and a network? https://www.macrotrends.net/1335/dollar-vs-gold-comparison-l... |
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| ▲ | jbverschoor 2 hours ago | parent | prev [-] |
| Can’t move what isn’t there |
