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Russia Makes Largest Gold Sell-Off Since 1998 Default to Fund Putin’s War Budget (united24media.com)
submitted 2 weeks ago by to c/world
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[–] 4 points 2 weeks ago (6 children)

Idk but I know the price of gold is way overvalued, it's 30x what it was in 2001 or so. The gold to silver ratio is the metric used throughout history, and 15 silver to one gold, or 13 by some estimates, is traditional. The ratio now, is 70/1.

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  • [–] 4 points 2 weeks ago (1 child)

    Interesting. Any idea why?

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  • [–] 3 points 2 weeks ago

    Countries are expecting to need wartime finances. The world reserve currency is in question, which puts all currencies in question. Stocks and real estate are overvalued.

    Just off the top of my head. There is a lot of instability and uncertainty. Gold is safe.

    This price means a lot of very powerful people with obscene amounts of money think the future is going to be extremely rough.

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  • [–] 1 point 2 weeks ago (2 children)

    Wonder if that's because we now have practical uses for gold across several industries.

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  • [–] 3 points 2 weeks ago (1 child)

    It could be, but I'd doubt it. We also have industrial uses for silver, and the amount of gold needed for things like electronics is relatively small. It could have some effect, but I don't think it should be this dramatic.

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  • [–] 2 points 2 weeks ago

    If practical uses drove the cost platinum and pallidium would still cost more than gold, (they did for some years around 2001,) as they are catalysts for chemical processes, and can be used like gold to handle high currents without burning up.

    Silver actually has a lower specific resistance than gold and platinum and the like, it can handle high voltages though not as much as gold and platinum.

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