Use Gold!
The Dollar gold price is now its lowest since the end of last year, at just above $1,835 an ounce. In Pounds Sterling, the price is now about £1,523 an ounce, also the lowest since the end of last year. Is this cheap or expensive?
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There’s no easy answer. Compared to a short time ago obviously gold is now priced more competitively. For some, gold is in its “most oversold level since October 2022”, meaning sold at a price below its ‘true’ value. Other opinions are that gold has been overvalued – meaning trading at a price beyond its ‘true’ value. Of course no-one knows what that ‘true’ is.
Investors tend to think in long terms, buying and holding an asset for a while. If one thinks as an investor then the history of gold shows the price tends to go higher, although (as the chart below shows) with dips and peaks along the way.
But with Glint one can be both an investor and a user of gold as money. With fiat currencies losing purchasing power due to the impact of inflation, using gold as money makes sense. The Dollar and Pound Sterling have both lost more than 90% of their purchasing power in the last 100 years.
Hitting the sweet spot – i.e. buying gold at what one thinks is a low price – is an ideal rarely achieved except by luck.
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At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.
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