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Maybe I am just ignorant, but I do not see the appeal of gold. "Gold. How archaic." is what I immediately think. So many other commodities will hold value, eve

Maybe I am just ignorant, but I do not see the appeal of gold. "Gold. How archaic." is what I immediately think. So many other commodities will hold value, even in the worst of times, being either useful or desired, and have long shelf lives.

bluntfang 7y ago
Real question...what is useful about gold today that makes it valuable, other than it's scarcity?
- ChuckMcM 7y ago
  It is actually an industrial metal.
- Marcus316 7y ago
  All sorts of electronics have gold in them. Minute traces, to be sure ... but it is a use ...
- TotempaaltJ 7y ago
  Its scarcity is the primary reason it holds value, from what I understand. But: https://en.wikipedia.org/wiki/Gold#Other_applications https://en.wikipedia.org/wiki/Gold#Other_applications Electronics mostly, it seems.
- throwayEngineer 7y ago
  It's scare. Yes. It's a rock trading card that people have been trading for thousands of years. The industrial uses exist, but it's a vehicle of Economic exchange. This is why I find Bitcoin useful. It's nuclear chemistry proof.
  - SubiculumCode 7y ago
    Let us say that there was a nuclear war, and everyone left is near starvation, lacks resources and security. What holds value? Gold? I'd say useful or desired commodities: Food, fuel, guns, working machines, liquor, tobacco. Perhaps gold will be settled on as the most fungible (and transportable) material for trade, but if I were preparing for such times, I would be betting on the commodity, not an inert bit of metal.
    - Nasrudith 7y ago
      Of course those commodities are pretty terrible currencies in non-destabilized to a dark age times.
  - EpicEng 7y ago
    >This is why I find Bitcoin useful. It's nuclear chemistry proof. But not people proof, as it's wild fluctuations will attest to.
  - mrob 7y ago
    If we have energy cheap enough to make nuclear transmutation a practical source of gold then the economy is already unrecognizable.
  - germs12 7y ago
    Completely agree.
- sunseb 7y ago
  Gold is a symbol. Gold is the color of the sun. Gold is a pure metal (which doesn't rust). It's like the metal of the gods.
- ericd 7y ago
  It’s the incredibly long and consistent history of being considered valuable. It cannot easily be devalued by any government, unlike any fiat currency. It’s extremely portable, even for relatively large values of it. And faith in all those things is what gives it value.
- Agathos 7y ago
  https://www.npr.org/sections/money/2011/02/07/131363098/the-tuesday-podcast-why-gold https://www.npr.org/sections/money/2011/02/07/131363098/the-...
- AnimalMuppet 7y ago
  Its scarcity. The US Federal Reserve can create dollars at their discretion, but they can't change the chemical composition of the earth's crust. You can think of gold as insurance against fiat currencies being debased by their issuing governments. You can also be pretty sure that it will be valuable anywhere you go.
crazynick4 7y ago
Gold has been the longest most stable 'currency' historically. Governments with some of the largest economies hold large supplies of gold (and they're not trading it for BTC). It's value has been on par with inflation since we've started keeping track of its value. This creates confidence among buyers. People agree it has value because the most powerful players in the global economy agree that it has value. There is also a limited amount of it.
- londons_explore 7y ago
  > There is also a limited amount of it. Do people trade gold 'still in the mountain'? I could start a market for gold still underground, effectively saying "you have purchased 1kg of gold, but to redeem, you have to pay $500 of mining costs". Since there is a near unlimited supply of gold in the entire earth's crust, that could work to make a price ceiling on actual gold, which in turn would severely reduce its use as a reserve currency.
  - crazynick4 7y ago
    I see your point but it's not like we ever just mine a ton of gold and flood the market. New gold gets mined but it's not done at a rate that influences that market price. Theoretically yes, there is an unlimited amount, but in practice most of that gold will never be found.
Reedx 7y ago
Not sure why you're being downvoted. It's a valid thought. And Warren Buffet agrees gold is not a good choice because it's not a productive asset. A bar of gold in your safe won't produce anything. After 50 years it's still just a bar of gold. Compare that to what the market does over 50 years. It's better to buy farmland or part of a company or a property that you rent out. Productive assets.
- sangnoir 7y ago
  Which market, and which 50 years? Looking at a global inflation map, one would have fared better with gold in a surprisingly large number of countries. I will concede that the US has had a great past 50 years - but I do not believe in infinite growth from finite resources, on the other hand I'm not going to hazard a guess as to when the growth will slow down. > After 50 years it's still just a bar of gold. Not rusting or otherwise degrading is a great thing. Gold is not just pretty to look at, it has great electrical properties that make it useful to industry

bluntfang 7y ago

Real question...what is useful about gold today that makes it valuable, other than it's scarcity?

ChuckMcM 7y ago
It is actually an industrial metal.
Marcus316 7y ago
All sorts of electronics have gold in them. Minute traces, to be sure ... but it is a use ...
TotempaaltJ 7y ago
Its scarcity is the primary reason it holds value, from what I understand. But: https://en.wikipedia.org/wiki/Gold#Other_applications https://en.wikipedia.org/wiki/Gold#Other_applications Electronics mostly, it seems.
throwayEngineer 7y ago
It's scare. Yes. It's a rock trading card that people have been trading for thousands of years. The industrial uses exist, but it's a vehicle of Economic exchange. This is why I find Bitcoin useful. It's nuclear chemistry proof.
- SubiculumCode 7y ago
  Let us say that there was a nuclear war, and everyone left is near starvation, lacks resources and security. What holds value? Gold? I'd say useful or desired commodities: Food, fuel, guns, working machines, liquor, tobacco. Perhaps gold will be settled on as the most fungible (and transportable) material for trade, but if I were preparing for such times, I would be betting on the commodity, not an inert bit of metal.
  - Nasrudith 7y ago
    Of course those commodities are pretty terrible currencies in non-destabilized to a dark age times.
- EpicEng 7y ago
  >This is why I find Bitcoin useful. It's nuclear chemistry proof. But not people proof, as it's wild fluctuations will attest to.
- mrob 7y ago
  If we have energy cheap enough to make nuclear transmutation a practical source of gold then the economy is already unrecognizable.
- germs12 7y ago
  Completely agree.
sunseb 7y ago
Gold is a symbol. Gold is the color of the sun. Gold is a pure metal (which doesn't rust). It's like the metal of the gods.
ericd 7y ago
It’s the incredibly long and consistent history of being considered valuable. It cannot easily be devalued by any government, unlike any fiat currency. It’s extremely portable, even for relatively large values of it. And faith in all those things is what gives it value.
Agathos 7y ago
https://www.npr.org/sections/money/2011/02/07/131363098/the-tuesday-podcast-why-gold https://www.npr.org/sections/money/2011/02/07/131363098/the-...
AnimalMuppet 7y ago
Its scarcity. The US Federal Reserve can create dollars at their discretion, but they can't change the chemical composition of the earth's crust. You can think of gold as insurance against fiat currencies being debased by their issuing governments. You can also be pretty sure that it will be valuable anywhere you go.

crazynick4 7y ago

Gold has been the longest most stable 'currency' historically. Governments with some of the largest economies hold large supplies of gold (and they're not trading it for BTC). It's value has been on par with inflation since we've started keeping track of its value. This creates confidence among buyers. People agree it has value because the most powerful players in the global economy agree that it has value. There is also a limited amount of it.

londons_explore 7y ago
> There is also a limited amount of it. Do people trade gold 'still in the mountain'? I could start a market for gold still underground, effectively saying "you have purchased 1kg of gold, but to redeem, you have to pay $500 of mining costs". Since there is a near unlimited supply of gold in the entire earth's crust, that could work to make a price ceiling on actual gold, which in turn would severely reduce its use as a reserve currency.
- crazynick4 7y ago
  I see your point but it's not like we ever just mine a ton of gold and flood the market. New gold gets mined but it's not done at a rate that influences that market price. Theoretically yes, there is an unlimited amount, but in practice most of that gold will never be found.

Reedx 7y ago

Not sure why you're being downvoted. It's a valid thought. And Warren Buffet agrees gold is not a good choice because it's not a productive asset. A bar of gold in your safe won't produce anything. After 50 years it's still just a bar of gold. Compare that to what the market does over 50 years. It's better to buy farmland or part of a company or a property that you rent out. Productive assets.

sangnoir 7y ago
Which market, and which 50 years? Looking at a global inflation map, one would have fared better with gold in a surprisingly large number of countries. I will concede that the US has had a great past 50 years - but I do not believe in infinite growth from finite resources, on the other hand I'm not going to hazard a guess as to when the growth will slow down. > After 50 years it's still just a bar of gold. Not rusting or otherwise degrading is a great thing. Gold is not just pretty to look at, it has great electrical properties that make it useful to industry