Originally posted by BeyondPerception
Originally posted by FusionInFLI wish I could give you 1k stars. You hit the nail on the head. You can't eat gold and no one will want
gold when your belly needs filling.
Truth is, gold does have it's uses, but in general, it's just a status symbol, and that's where most of it's value comes from. I don't see it being a
necessity anywhere. It's just a useful option in some cases.
It holds other common uses, like in electronics, but copper is also a great metal in conductivity.
www.kp44.org... It'll be a long time before we see any desperate need for gold, other than for something
to put around our wrists or around our necks, given all of the other metals widely available, and the prices they are at.
Some common uses for gold.
What is the true value of gold, without all of the artificial hype around it, no idea. But I doubt it to be anywhere near what people currently pay
for it. We'll soon find out, I suppose.
edit on 8/23/2011 by BeyondPerception because: (no reason given)
Let us take a bushel of rice as an example. What is the intrinsic value of a bussel of rice? Well accoding to someone who believes in labor theory, a
bussel of rice is worth all the labor and materials it took to produce the bushel. This view makes sense but is deeply flawed. It does not take into
consideration supply and demand. Is that bushel of rice more expensive in China or in Northern Canada? It depends on BOTH the supply/demand and the
cost of production.
I know what you are thinking...rice has purpose. You can eat rice. People want rice to survive. People will barter for rice because it has great
properties for a high carb meal. You can not eat gold (easily). Like the rice's riceness, gold is desired for the particular qualities inherent to
gold. While rice is good to eat, and so it serves a useful function as food, gold's qualities are the exact qualities you'd want if you were to design
Do you understand the need for money amongst barter? A straight trade for goods rarely works as both parties rarely have the same needs for what is
available to trade. Hence, a monetary unit is derived to hold value. You with your food my come across me and find that you need something that I
posess a stockpile of. I am willing to barter/trade. You come to me with food in exchange for say, my medical supplies. I have enough food. What else
can you offer. I want a vehicle. Your vehicle is worth more than a med kit. Are you seeing the need for a monetary unit yet?
How do people pick a medium to hold value? How do people agree on something that important? The medium must satisfy the needs of ALL parties (buyer,
seller, saver, and debtor). If the medium is rejected by any facet of commerce it will fail. The medium must:
Be divisible into smaller units without loss of value
Be fungible: that is, one unit or piece must be perceived as equivalent to any other, which is why diamonds, works of art or real estate are not
suitable as money
Be able to be reliably saved, stored, and retrieved (non parishable)
There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money.
The value of the money must also remain stable over time (supply is regulated or naturally rare)
A specific weight, or measure, or size to be verifiably countable. For instance, coins are often milled with a reeded edge, so that any removal of
material from the coin (lowering its commodity value) will be easy to detect.
Impervious to countfeiting.
These are among many of the concerns that a medium/money must address.
As you can begin to see, gold is a wonderful answer to these guidlines for defining a good/excepted exchange medium.
Gold makes a good exchange medium (money) like rice makes a good food.
edit on 23-8-2011 by QuantumDisciple because: (no reason given)