3 ms·

Scarcity does not equal value, if value is defined as "something that is useful." Perhaps the language is deficient in not making a distinction between inherent

by rue 17y ago

Scarcity does not equal value, if value is defined as "something that is useful." Perhaps the language is deficient in not making a distinction between inherent and assigned value. Gold has real value as, for example, a material used in electronics. That is about it aside from aesthetics. Additionally, humans ascribe (nonexistent) value to gold for the reasons you mentioned. You can certainly argue, as some others seem to, that being suitable for use as currency is value inherent but that assumes the necessity for currency. In the past, perhaps.

teilo 17y ago
Correct. Scarcity does not equal value, and scarcity alone does not make a good currency. However, gold is not only scarce, but also durable, divisible, and portable. The unique thing about gold is that its value is actually in its intrinsic suitability as a currency, more so than any other substance on earth.
- rue 17y ago
  I can accept that with the stipulations that it is a very suitable material for currency, not necessarily the most suitable one; and that this is only true at certain early or unsophisticated stages of civilisation. However, even then the unspoken and often ignored requirement is that there is something of real value that the currency can represent. This also ignores fluctuations in the perceived value of gold, which belies its valuation not being tied to its function as currency. Arguing that e.g. mining for gold is a service whose end product is currency, "consumed" by others is circular (but in reality that does not matter.) I suppose it can simply be said that gold is considered to have value by common agreement; but that agreement is not irrevocable unlike some believe.
petercooper 17y ago
FWIW, gold also has value in certain cancer treatments, glass making, satellite protection, dentistry, microscopy, and certain photographic films. Not to detract from your point though - it just has wider uses than merely electronics :-)

by rue 17y ago

teilo 17y ago

Correct. Scarcity does not equal value, and scarcity alone does not make a good currency. However, gold is not only scarce, but also durable, divisible, and portable. The unique thing about gold is that its value is actually in its intrinsic suitability as a currency, more so than any other substance on earth.

rue 17y ago
I can accept that with the stipulations that it is a very suitable material for currency, not necessarily the most suitable one; and that this is only true at certain early or unsophisticated stages of civilisation. However, even then the unspoken and often ignored requirement is that there is something of real value that the currency can represent. This also ignores fluctuations in the perceived value of gold, which belies its valuation not being tied to its function as currency. Arguing that e.g. mining for gold is a service whose end product is currency, "consumed" by others is circular (but in reality that does not matter.) I suppose it can simply be said that gold is considered to have value by common agreement; but that agreement is not irrevocable unlike some believe.

petercooper 17y ago

FWIW, gold also has value in certain cancer treatments, glass making, satellite protection, dentistry, microscopy, and certain photographic films. Not to detract from your point though - it just has wider uses than merely electronics :-)