It is the fiat currency debasement via unlimited money printing that makes the gold chart go up.
Imagine being in Zimbabwe or Weimar Germany and watching your stock portfolio and gold going up...
Incorrect. Physical scarcity matters, but it’s not the main driver. Gold’s price is far more sensitive to interest rates, dollar strength, sentiment and fear, speculative flows.
The stability it’s historically shown was mostly the result of fixed monetary systems, and those are long gone.
because you are getting paycheck in fiat, you are psychologically programmed to think of fiat as something stable, and Gold as volatile.
while in reality prices expressed in Gold ounces remained fairly stable for example: https://i.redd.it/1b5mfrqkxxef1.jpeg
You're defining gold to be stable, and fiat to be volatile. Well, fiat is volatile, but that doesn't make gold stable.
Gold (measured in dollars) nearly doubled over the last year. Does that mean that the dollar is worth only half what it was a year ago? No, it doesn't. (There's been some inflation, but not nearly 100%.)
Gold is down 10% since January 28th. Does that mean that the dollar is worth 10% more than it was on January 28th? No, it doesn't.
Gold is not as stable as you claim it is.
That said, I agree that e.g. gold under a regime where most things for sale are priced in gold is more stable than gold as a novelty investment under a fiat currency regime.
When things are priced in gold, most of the demand for gold comes from the fact that it's useful as currency. All of the phenomena we have now still exist, and they disturb the price, but they're small effects compared to the demand for currency.
In the fiat regime, that source of demand is gone. All of the same random effects still push the price of gold around, but because the price is so much lower (due to much lower demand), the price swings are wilder.
If I may try for a metaphor, then it's like our default perspective from the Earth is that we are the center of the universe, the other planets, Sun, and stars move around us, and we are stationary.
But, to zoom out, you can take a more objective view that everything is moving independently (ie, volatile). The baseline stability is a subjective perspective.
Those are only relevant on a shorter timescale; on a long timescale gold's held its value extremely well. The price of a loaf of bread in gold now is still similar to what it was in the Roman Empire 2000 years ago.
So if you really think about it. If you held gold for 2000 years. You would only reach same standard of living as 2000 years ago...
Gold seems stable largely because the price must rise to make mining significantly more of it economically viable. Yet, were it truly stable, prices measured in terms of gold should have seen price deflation from the Roman era to now. That this is not the case proves that gold has zero intrinsic value. It may have some inherent utility, but that is not the same thing. As people want more gold for use as a conductor, or in alloys for dental prostheses, or for adornment the price will go up. Speculative demand can make the price go up. Demand for trade without USD can make the price go up.
Gold and USD prices are independent of one another. That they can be used to measure one another is also a human invention and an accident of history.
All value is subjective.
That seems pretty unlikely, when the price of a loaf of bread in gold now is less than half of what it was only 3 years ago.
Barely keeping up with inflation is not the win you think it is.