patrick.net

MolotovCocktail says

Each cellphone contains ~0.034 grams of gold.

That is about $4 worth of gold in each cell phone

So how much labor is required to remove the gold ?

What is the net profit of this type of business ?

.

The three major gold bull runs in modern history: 1980, 2011, and 2024–2025.
1. The 1980 Gold Spike
Peak: $850/oz in January 1980
(Adjusted for inflation in 2024 dollars: ~$3,200/oz)
Drivers:
• Runaway inflation (CPI > 13%)
• Oil shocks and stagflation
• Iranian Revolution and U.S. hostage crisis
• Weak U.S. dollar and declining trust in fiat currency
• Low interest in holding dollars due to negative real returns
Crash:
Once Fed Chair Paul Volcker hiked interest rates above 20% to tame inflation, gold collapsed. By 1982, gold fell by over 60%.
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2. The 2011 Gold Peak
Peak: $1,920/oz in September 2011
(Inflation-adjusted to 2024: ~$2,600/oz)
Drivers:
• 2008 financial crisis aftershock
• Fear of bank failures and sovereign debt crises (e.g., Greece)
• Quantitative easing (QE) and rising U.S. debt
• Zero interest rates, making gold more attractive
• Concerns about U.S. credit downgrade (S&P downgraded U.S. debt in 2011)
Crash:
As global markets stabilized and interest rate hikes returned post-2013, gold lost nearly 40% over the next few years.
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3. The 2024–2025 Gold Surge (Ongoing)
Peak (so far): Over $3,400/oz in 2025
(Uncharted territory—not just inflation-adjusted peak, but nominal all-time high)
Current Drivers:
• Record U.S. debt (~$35T+) and rising deficit
• Inflation fears remain even as CPI moderates
• Geopolitical instability: wars, China-U.S. tensions, uncertain global leadership
• Growing loss of faith in fiat currencies
• Central bank gold buying at record levels (especially China, Russia, BRICS)
• Interest in de-dollarization and hedging against U.S. fiscal risk
• Domestic political instability in the U.S. (fears of authoritarianism, currency controls, etc.)
Is it a bubble or just a shift?
Too soon to say—but unlike 1980 or 2011, this surge is not occurring in isolation. It’s part of a broader re-evaluation of global financial systems, fiat vulnerability, and U.S. dollar dominance.
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Comparison Chart Summary
Year Peak Price (Nominal) Inflation-Adjusted Key Driver Outcome
1980 $850/oz ~$3,200/oz Inflation, oil crisis, geopolitical fear Crashed post-Volcker
2011 $1,920/oz ~$2,600/oz Financial crisis, QE, debt ceiling drama Fell post-recovery
2025 $3,400+/oz All-time high Sovereign debt, inflation hedging, de-dollarization Still climbing

This may be either the end game of the Triffin Dilemma or a prelude to a new variation of fiat dollars akin to the invention of the Petrodollar in the 1970-80's.

The dollar is becoming almost an article of faith, just like Nuclear Fusion. So near, and yet so far . . .