Comment on Is gold investing a scam?
sobchak@programming.dev 2 weeks agoYou can short gold ETFs. Gold is highly speculative and has crashed taking decades to recover (~1980-2005). It’s basically boomer-bitcoin.
Comment on Is gold investing a scam?
sobchak@programming.dev 2 weeks agoYou can short gold ETFs. Gold is highly speculative and has crashed taking decades to recover (~1980-2005). It’s basically boomer-bitcoin.
CaptainBlinky@lemmy.myserv.one 2 weeks ago
you can short EFT’s but shorting the metal itself is a different thing. As an element that has real world uses the market drives t he value.
HeyThisIsntTheYMCA@lemmy.world 2 weeks ago
Oh thank the abacus gods I’m not the only one doing that
sobchak@programming.dev 2 weeks ago
It pretty much is the same thing. In theory, shorting the ETF will drive the price of gold down (until the short needs to be covered; like all shorts), because all accounts must eventually be settled. The price of gold is literally set by the futures market, which people with the appropriate approval can also short. Gold dealers literally look up the price on the futures market and add/subtract a few percentage points to determine how much to buy/sell physical gold for.