Since time immemorial, gold has functioned as a store of value and a medium of exchange.
It wasn’t until the 20th century — when central banking, the welfare state, and the warfare state all consolidated — that the gold standard was completely abandoned by governments worldwide.
Even with such a drastic move, people still find value in gold. The fact remains that in times of economic crisis, people trust gold’s capacity as a store of value. When currencies are being debased left and right, gold is a safe haven for people who want to preserve their wealth.
Most people who live in First World, developed economies generally don't get this. They’ve never had to experience the scourge that is mass inflation. By contrast, people living in developing economies and corrupt nations have to often have to deal with inflation that destroys their hard-earned savings and overall wealth.
As a result, those who have the resources, end up acquiring gold as a form of insurance policy against the inflationary elements. However, the game is changing. Now the economic calamities that everybody thought only happened in poor nations are beginning to make their way to the West.
In light of this, Westerners would be wise to start acquiring gold and other precious metals. Rough times lie ahead.
You are comparing Saudi Arabian lifting costs with U.S. total costs which include drilling and production. Saudi Arabia doesn’t have any drilling costs because they haven’t had any oil discoveries since 1988 and only one small discovery since the 1960’s.
The welfare state and the warfare state consolidated; it cannot be said better…