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[Loud Whispers]

All I know is 100 years ago you could buy a house with ten bars of gold, today you can buy a house with ten bars of gold

[Bralbaard]

I don't know anything about gold either, except that it is very shiny.

But knowing much about these things is not important anymore. Trump's liberation day makes it clear economic decisions no longer need to be based on any kind of economic knowledge or experience.
You can just pull some numbers from out your ass, and use it to completely upend the economic system, and hope for the best.

It will be a golden age (pun intended) for us armchair economists. 

[Loud Whispers]

How I learned to stop fearing and love the tariff. All my homies tarriff uninhabited islands

[Bralbaard]

Yes I don't understand what is going on, but it seems Trump has shot himself in both his feet and is asking us not to retaliate.

[martinuzz]

Apple down 8%, NVidia down 5%, Tesla down another 3,5%.
Nasdaq in total down 4,7% today. That is worse that the hit the AEX took in Amsterdam, at minus 2%.

[Strongpoint]

Oil gong -7% in a day is something I haven't seen since COVID.

In fact, almost EVERYTHING is red.

But it may be a mere short-term panic and we'll see a rebound in a few days. People (and Media) tend to pay too much attention to daily changes

[LuuBluum]

So I don't want to bring the politics into this, but merely focus on the economic question.

Today we saw world equities markets drop significantly, the US dollar dropped versus foreign currencies, but the price of gold in US dollars also dropped.

This makes me realize that I'm not sure what demand for gold (as priced in USD) represents. My naive expectation was that if the expectations for the US economy were dollar devaluation and US inflation, then gold would go up in price, indicating a devaluing of the USD.

If gold drops, does this indicate that gold is not just a proxy for the real value of a dollar, but also includes a measure of overall economic growth? That is, the price of gold is something like "expectation of overall economic growth / value of a dollar"?  So for a constant expectation of growth and a falling dollar, price of gold goes up. Or if value of a dollar is constant but growth expectations drop, gold drops.

I'm curious about this one, and others' thoughts on the matter!

I don't usually post here but I know the answer to this one: people were buying up gold and silver in the US expecting those to also be hit by tariffs. However, gold and silver were made exempt to the tariffs, so their value is now falling because they were overbought in preparation for tariffs that never happened to them.

[Loud Whispers]

I don't usually post here but I know the answer to this one: people were buying up gold and silver in the US expecting those to also be hit by tariffs. However, gold and silver were made exempt to the tariffs, so their value is now falling because they were overbought in preparation for tariffs that never happened to them.

you are very wise

in that vein of news, Australian gold is booming again for much the same reasons

[wobbly]

I don't usually post here but I know the answer to this one: people were buying up gold and silver in the US expecting those to also be hit by tariffs. However, gold and silver were made exempt to the tariffs, so their value is now falling because they were overbought in preparation for tariffs that never happened to them.

you are very wise

in that vein of news, Australian gold is booming again for much the same reasons

I will add a comment that it's Federal election time here and that there are 3 Australian states (1 is technically a territory), with economies heavily tied to the mining/gas industry.

[McTraveller]

I don't usually post here but I know the answer to this one: people were buying up gold and silver in the US expecting those to also be hit by tariffs. However, gold and silver were made exempt to the tariffs, so their value is now falling because they were overbought in preparation for tariffs that never happened to them.

This seems... odd, unless you're talking about industrial (including jewelry) gold and silver, and isn't that just a very small part of the value of gold?  I'm not claiming this is false, it's just quite a surprising take.  I mean, I didn't think the ~40% run on gold over the past quarter would be due to tariff hedging, would it? Especially since it's a worldwide market?

I'm curious if you have any references to link - it's definitely not what I expected!

[JoshuaFH]

Maybe businesses should switch back to using Gold Bullion as currency, to get around the tariff.

[wobbly]

I don't usually post here but I know the answer to this one: people were buying up gold and silver in the US expecting those to also be hit by tariffs. However, gold and silver were made exempt to the tariffs, so their value is now falling because they were overbought in preparation for tariffs that never happened to them.

This seems... odd, unless you're talking about industrial (including jewelry) gold and silver, and isn't that just a very small part of the value of gold?  I'm not claiming this is false, it's just quite a surprising take.  I mean, I didn't think the ~40% run on gold over the past quarter would be due to tariff hedging, would it? Especially since it's a worldwide market?

I'm curious if you have any references to link - it's definitely not what I expected!

Isn't buying gold generally linked to economic uncertainty? Business investment fluctuates on economic conditions but gold/silver/property holds a certain return?