Why hasn't the price of gold been going up?

submitted by trident765 from self.investing

I have a gold stock option which I bought a few months ago as a bet that there would be inflation. But inflation is happening and yet the price of gold is stagnating. Why is the cost of everything going up, except gold?

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[–]fschmidt 5 insightful - 2 fun5 insightful - 1 fun6 insightful - 2 fun -  (0 children)

Because modern scum consider cryptos to be a preferable alternative to gold, so this competes with gold and drives its price down. This is why I am not buying precious metals.

[–]IkeConn 4 insightful - 1 fun4 insightful - 0 fun5 insightful - 1 fun -  (2 children)

Rich people are buying up houses.

[–]Zapped 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (0 children)

Yep. Capital is cheap right now if you're able to tap into it. Might as well trade it for something lasting.

[–]jet199 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (0 children)

Companies too.

[–][deleted] 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (0 children)

Gold is a good investment. It's a hedge against hyperinflation, basically when money isn't worth anything gold still will be.

It's not something you should expect huge returns from in a few months time. Or even a few years unless something really fucked up happens, but then the stock market won't matter (see buying physical bullion).

You can see the spike of gold early in the pandemic and then it calmed down. That was it I guess.

Probably doesn't help money is streaming, billions, in and out of crypto every day.

[–][deleted] 2 insightful - 2 fun2 insightful - 1 fun3 insightful - 2 fun -  (0 children)

I think gold will go up, not in terms of a big increase which may be a bubble, like with bit coin