Let’s begin with a quiz.
  • In the case of war or total economic collapse, which would be more valuable, oil or gold?
  • What is the average cost of producing an ounce of gold, a barrel of oil and printing a dollar?
  • Is gold a commodity, currency or Veblen good?
While days of the gold standard are behind us, gold still plays a role in day-to-day life, be it as a currency or commodity. According to World Gold Council, the Turks amassed over 3,500 tons of gold “under-the-pillow” by 2014 and Russia and China are stocking up. Is gold truly an investment or are people busy stacking “rocks” which could be another tulip mania?
Famous gold quote...
Gold Has Never Been Worth Zero

Gold investment advisers say when countries start stocking gold, it is not indicative of wealth but potential economic turmoil. They also say the accumulation of gold indicates what other nations and hedge funds think about the US dollar and the global economy. Others fall in the group of the British economist John Maynard Keynes and believe that “gold is a barbarous relic”.
The image below shows the rise of gold since 2001 and how gold reacts to economic events affecting the US dollar.
Many also claim that gold has neve…
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