Comment by bwestergard
Comment by bwestergard a day ago
"Generally no one is “consuming” gold bullion."
Huh? Gold bullion is an input to hundreds of industrial processes. If it weren't, why would gold have any value?
Comment by bwestergard a day ago
"Generally no one is “consuming” gold bullion."
Huh? Gold bullion is an input to hundreds of industrial processes. If it weren't, why would gold have any value?
Gold doesn't corrode away. If gold was cheap, my roof shingles would be made of gold. You'd also have gold wires instead of copper wires.
Wouldn’t that be for the same kinds of reasons things like purple dyes were valuable: rare to find, hard to harvest, hard to transmogrify (insect/sea life guts into clothing dye, gold into chains or other wearables), hard to break, which all culminates into a quick visual indication of wealth.
Now? Gold is a great conductor of electricity (of course silver is better) and some people still like wearing lots of flashy jewelry.
I have no earthly clue why people find it valuable to invest in other than it’s like bitcoin: it’s valuable because everyone else also thinks it’s valuable.
Never once have I read a quarterly progress report from the CEO of the element “gold” outlining profit strategies for the next year.
> I have no earthly clue why people find it valuable to invest in other than it’s like bitcoin: it’s valuable because everyone else also thinks it’s valuable.
Unlike bitcoin there is a price “floor” because of its use in jewelry and industry. Even if no one hoarded it, it would still have some value.
That's not consumption as it applies to sales tax rules. In almost every jurisdiction, raw materials and inventory purchased for resale or industrial processing are exempt from sales tax.