Re:Bitcoin dropping after BTC China said it is closing
by vasilipupkin on Thursday September 14, 2017 @01:31PM
(#15250322)
Jewelry gold is just jewelry gold - it has intrinsic value because it's a nice material to make jewelry from. That value is not financial. Bitcoin can't claim that part of it.
According to wikipedia, The consumption of gold produced in the world is about 50% in jewelry, 40% in investments, and 10% in industry.
but you have to realize, part of that 40% in investments makes sense because there is a fundamental non financial use case - jewelry. Someone will always buy gold at some price to make jewelry. So, that also drives investments. So bitcoin can't claim all of that 40%
What I can't find is the percentage of all above ground gold that is held in vaults & Jewelry vs captured in industrial uses.
That would be a better figure-- because it takes into account the centuries of accumulated financial gold (whereas jewelry and industrial gold is more likely to be recycled over time.)
Also, I would consider jewelry gold to be financial gold as well, because it is really almost the only store of wealth available to people at the lower socioeconomic levels.