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And of course there's a war with Russia, which might try to destabilize the western economies and monetary system if that's possible.

Shouldn't the prices for those commodities be sky-high because everyone tries to hedge against inflation as well as the looming monetary crisis? Why isn't that the case?

And of course there's a war with Russia, which might try to destabilize the western economies and monetary system if that's possible. Shouldn't the prices for those commodities be sky-high because everyone tries to hedge against inflation as well as the looming monetary crisis? Why isn't that the case?

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[–] • 5 pts

Because the gold market is highly manipulated. It is almost impossible to trade real gold. Gold trading is done using certifucates which promise gold as a way of claiming they are backed by gold but there is no requirement for actual gold to be in reserve. So there is far more gold certificates than there is gold. They can essentially print certificates like toilet paper.

Meanwhile physical gold is subject to taxes and broker fees twice. Once when you buy and again when you sell. This destroys the ability for regular people to hedge with real gold.

[–] • 0 pt

No it doesn't. You just buy and sell in Kilos, then broker-fees don't matter. One kilo is something like $60k, i.e well within what ordinary boomers have as savings.

[–] • 1 pt

The market is not liquid enough for that. Maybe in Walled gardens where only bankers are allowed. The local exchange is not going to buy 60k in gold from you for a negligible fee. Also tax is a percentage not a fixed rate.

[–] • 0 pt

Well, not far from where I am there's a a local shop of a mint that buys and sells large amounts of gold, and their spread is less than two percents you're talking kilos. I think it's even less than one percent. The spread for coins is far larger.

Besides, if there's inflation, this means, that the markets have too much liquidity. If markets aren't liquid enough, there's no inflation. And if there's no inflation, what happened to all this money that has been printed during the past few years?

[–] • 0 pt

Also tax is a percentage not a fixed rate.

Then the issue is taxes, or market interference, and not gold.