The Challenge For Gold
Gold use to be a premium store of value. That is now coming into question as the world changes. Due to the emergence of the digital world, does it make sense that the primary store of vlaue is physical?
In this video we go beyond that and cover some of the challenges with gold. The fact that countries are cracking down on movement with large sums of value is a problem.
▶️ 3Speak
0
0
0.000
the world changes in different directions first gold and now it is digital money (Cryptocurrencies) although we are in low hours we will soon recover.
It's definitely a limiting factor for the gold bugs. I honestly prefer crypto because it's easy to travel with and we all know the big institutions are playing funny money with the gold markets.
Posted Using LeoFinance Beta
Summary:
In this video, the speaker discusses the challenges associated with gold as a safe haven asset. He highlights issues related to portability, settlement, and government restrictions. The speaker points out that in today’s digital age, assets like Bitcoin are gaining traction over traditional stores of value like gold. The speaker also emphasizes the shift in generational preferences, noting that millennials are more inclined towards Bitcoin rather than gold. Overall, he raises questions about the future relevance of gold as a valuable asset.
Detailed Article:
The video delves into the evolving perception of gold as a safe haven asset and sheds light on various issues surrounding this precious metal. Taskmaster starts by acknowledging the historical reputation of gold as a safe store of value, especially during times of economic uncertainty or crisis. However, he points out a significant drawback – the lack of portability. Taskmaster argues that while gold can safeguard wealth, its physical nature poses challenges in terms of mobility, especially in the context of traveling or cross-border movements. He highlights instances where individuals have faced confiscation or scrutiny while carrying gold, particularly post-events like the Patriot Act in the United States.
Moreover, the discussion extends to the geopolitical implications of holding significant gold reserves, citing the example of Russia’s substantial gold investments in 2018-2019. Taskmaster elucidates the predicament faced by countries like Russia, emphasizing the risks associated with a heavy reliance on gold reserves, especially in the absence of access to the global monetary system or central banks. This narrative underscores the limitations of gold as a practical and strategic asset in modern times.
Furthermore, the conversation delves into the challenges of settling transactions in gold. Taskmaster raises pertinent points about the feasibility and practicality of conducting large-scale global transactions using physical gold, emphasizing the logistical hurdles and inefficiencies involved in such processes. The inefficacy of gold-backed currencies in facilitating seamless international transactions is a focal point in this segment of the discussion.
The dialogue then transitions into a comparison between gold and Bitcoin, drawing attention to the growing trend among millennials towards digital assets like Bitcoin. Taskmaster speculates on the potential impact of generational wealth transfer from baby boomers to millennials on the traditional perceptions of valuable assets. He notes a shifting preference towards Bitcoin among millennials, pointing to the ease of transfer and accessibility associated with digital currencies compared to traditional stores of value like gold.
In conclusion, Taskmaster posits a thought-provoking question regarding the future relevance and status of gold in the evolving financial landscape. He encourages viewers to consider the fluid and subjective nature of financial constructs, stressing the importance of adapting to changing paradigms in value and finance. The video prompts reflection on the dynamic interplay between traditional assets like gold and emerging digital currencies like Bitcoin, signaling a potential paradigm shift in investment preferences and perceptions of value in the contemporary era.