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XSauravX OP t1_j1gmzap wrote

Reply to comment by MercSLSAMG in Eli5 Why did Canada get rid of it's all gold? by XSauravX

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

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MercSLSAMG t1_j1gnqt2 wrote

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.

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XSauravX OP t1_j1gny5m wrote

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

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MercSLSAMG t1_j1gqc65 wrote

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.

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