I know people out there who have invested a lot in gold under the belief that in the event of like complete societal collapse or hyperinflation, they could use it for purchasing.

I have the hunch it’s a scam, but I haven’t learned enough monetary theory, business, or economics to understand why.

  • rc__buggy@sh.itjust.works
    443·
    3 months ago

    If you don’t hold it, you don’t own it.

    Investing in gold someone else holds is silly. Having a few ounces stashed away is just illiquid asset that should be a hedge against inflation.

    • tired_n_bored@lemmy.world
      411·
      3 months ago

      You can have liquid, premium-free gold by buying an ETF/ETC. Whether you hold it or not is irrelevant in case of hyperinflation. Stashing it away may be useful only if you like to touch it I guess

      • diablexical@sh.itjust.works
        161·
        3 months ago

        Executive Order 6102

        If it can be taken from you with the stroke of a pen, then it isn’t yours. Gold financial products are useful speculative assets but not for calamity insurance.

        • tired_n_bored@lemmy.world
          31·
          3 months ago

          ETFs may be useless in case of a calamity (in that case I’d stash bullets and canned food, not gold) but they’re useful for hyperinflation scenarios because the financial system keeps working. See Turkey and Argentina