[sgbuffett]

I bought gold twice in my life.
Once at $1400 in Aug 2019 and another time in Oct 2020 at US$1900.

Although I was not a gold bug the idea that the Fed was print so many trillions would drive gold prices up eeally enticed me. This happened in the 70s and the financial crisis. I thought gold would easily shoot up to $3000.

Alas, there was an important difference with previous periods. Instead of going to precious metals and commodities this time money flowed to "virtual products" like bitcoin and Castle in sky concept called "disruptive technologies". Only recently both these fads crashed and brought some money into Gold.

If Gold did not surge when inflation was raging at 7%....and only went up when Putin threatened war, it shows that the role of Gold in finance appear diminished. God in itself has no intrinsic value. While less useless that bitcoin given it is used industrially and as jewelry, the main demand is still from use as store of value.

While it may or may not return to favor, the present role appear to much smaller than in its history.