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Gold's inherent value represents less than 1% of its total value. The rest is monetary premium. Bitcoin is 100% monetary premium, ie. inter-subjective value.

Another thing to consider is that people buy gold jewellery as a store of value. You don't spend $30k on a watch if you don't think it will keep its value.



>You don’t spend $30k...

Yes you do. You’ll almost never get the retail value out of a piece of jewelry if you try to resell it.


Not all jewelery has a huge markup over the metal weight. If you buy a gold watch, you can always get its gold value back. Same with stones.


Yes there exists jewelry that can be bought mainly as a store of value, but your argument was the much stronger statement:

>Another thing to consider is that people buy gold jewellery as a store of value. You don't spend $30k on a watch if you don't think it will keep its value.

This isn't true because the vast majority of retail jewelry, which is the majority of jewelry sold is a terrible store of value.

The average person that spends say $10k on a diamond ring isn't going to be able to get that value back again. Even beyond the issue with how much it's marked up, there's the problem that jewelry stores tend to sell on consignment, so they have little incentive to buy and resell used jewelry.

And if you look specifically at gold watches, a small fraction of the price is actually the price of gold itself.

According to this link https://www.montredo.com/how-much-gold-is-in-a-solid-gold-ro... a 30k Euro gold Rolex only contains about 4k Euros worth.

This link says something similar https://millenarywatches.com/how-much-gold-in-rolex/

A $30k gold Rolex contains about $5k worth of gold, yet it costs $22k more than the non gold version.


Yup, you're right. The "store of value" aspect only accounts for the price minus the premium, and the premium is typically large, especially on vintage watches.




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