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The gold analysis
- Dr. Harish Ravi
- Oct 5, 2023
- 1 min read
The fun question about gold when stored in cash reserves
1. It improves marketing of the riches of the country. 10 m^3 room full photo is 1 billion $.
2. It reduces inflation
a. If we store 1 billion $ of gold and less of 100 billion $ of commodities.
In 1 years gold appreciates at 10% while commodities inflate at 7%
So we use 0.9 billion $ say which becomes 1 billion $ kept again and spend
107. billion $ for commodities and have a gift of 0.1 billion $ of gold sale reducing inflation to 106.9 billion $ in this algorithm. So on for several years.
3. It improves import export. Every year we export 1 billion $ and import 10 billion $. Thus other commodities have to be sold to a lesser quantity at lower demand. Exported goods have more demand and thus a higher price.
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