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

More like ~$300 USD/ounce. So you take into the inflation of the USD which is 1 dollar in 1970 is roughly 7.50 today - that makes gold not have any increase whatsoever vs. the USD. In fact it's almost identical to a 4% cash bond.

So investing in gold is like investing in cash bonds - which is to say it's a shitty investment to make money, but has near guaranteed value.

The very simplified logic is this:

As long as Canada allows taxes to be paid with canadian dollars, the currency will hold value. As long as the government is making so much money out of taxes, they have no incentive to fuck up their own currency for short term gains.

Not having to have reserves to cover your currency is cheaper and allows you more freedom to do stuff to save the country from recessions or to drive growth among other stuff.

Canada has $0 dollars in gold reserves today.

There is a saying owning it is not the same as storing it.

So the Canadian gov sold all the gold cuz people believed in the government and expect them to make good economic decisions which will never hard the $CAD?

Yes and an ounce of gold has kept on rising Against the dollar it was around $21 or $34 in 1971 and it's over $1000 now

If you want to buy 99.9% of stuff with gold you would first have to sell your gold to get a currency. And the exchange rate of gold is based upon USD per ounce.

No, you are!

Strictly forward and at regular speed

Actually it's just opposite the value of gold has risen and is at ATH rn while the USD is at ATL

Actually it's just opposite the value of gold has risen and is at ATH rn while the USD is at ATL

There will never be a need of gold as a currency, only as a commodity. Gold is the same as lumber and oil - they are commodities that are traded for a set value.

Gold value is related to the US dollar. An ounce of gold = a set amount of USD based upon commodity trading. So if the USD loses value so does gold.

Not to be pedantic but money is not "based primarily on new mortgages". I agree with you that we have a serious problem but incorrect assignations of blame paralyse our actual ability to solve the issue.

Canada is trustworthy enought that people value their currency even if they don't have gold. Most countries, specially ones with good monetary policies have even close to enough bonds, international currencies or metals to back their whole currency. But it doesn't matter, as long as everyone knows it's much better for Canada that their currency continues to operate, nobody will believe they will rug pull all the people holding Canadian dollars.

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Pretty reasonable while looking at the ups

Yes holding usually costs the printable made-up currency

How much did it cost you to house that gold, pay salaries for security, etc?

Due to inflation, the cost in gold is more and more for the same goods, because you still need to convert to the dollar.

So it's cool if I'm a time traveler, got it. Unfortunately I am not.

What's the point in having 4% guaranteed income while inflation is 7% while gold stays neutral an ounce of gold is still an ounce of gold and usually if gold loses it value it recovers and everyone is fine but if the dollar starts gaining it's old value(deflation) everyone loses their shit

A bond has a guaranteed income vs gold which doesn't for any given currently conversion.

Not if holding it costs you money.

Cuz gold is finite and dollar ain't I mean the dollar is gonna be totally useless when you are trying to trade with someone who doesn't accept the dollar and gold is accepted by everyone u can easily exchange gold for the currency of that nation but there are country which will not accept the dollar

Because you can travel through time to almost any nation that has ever existed and exchange the gold for the current local currency. If you time travel with US dollars, you'll find the buying value fluctuates quite a bit. And since we have only figured out how to time travel into the future, investing in their currency now would result in a loss down the line.

Why? If you go to buy a car and offer them a gold bar, would they take it? How is it more real than offering dollars?

But the paper is not gold right? Wouldn't it be better to hold like the real thing cuz it's more real..?