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0 sats \ 3 replies \ @028559d218 22 Apr \ parent \ on: Is gold becoming the reserve currency? econ
How the hell do you 'trade in gold'?
Just sending the gold securely on a plane or ship is incredibly expensive, not to mention it can take days/weeks.
It's heavy and it all has to be verified... which can take forever.
I can't see gold becoming a 'currency' in the modern era plus people 'buying gold' aren't custodying themselves, they can't travel with it, and it's virtually impossible to 'pay' for things with it.
What gives?
At personal level, you can buy 1 ounce gold bars and sell them for cash at pawn shops. This way, it is a store of value.
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You'd be lucky to not get hit 20 percent or more between the pawns shops margin and whoevers margin + transparent you covered to acquire the gold.
You could be under water for a decade or more.
Gold is the mother asshole from which all central banks spring, for good reason.
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Small picture thinking.
You don't trade in it directly, national currencies float against it in a market based way without central bank swap lines and artificial pegs.
We're taking security zone scale, patriation that happens over decades.
This is how it used to be, Bitcoin is obviously better for the reasons you mention and an inevitable successor to gold, but we have to unwind the current system to go forward. This is what is happening now, 1 step back, 2 steps forward.
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