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i didn't express myself correctly. the use-value exists, definitely, but it's effect on exchange-value of the commodity is diminished as that commodity becomes
by keymone 6y ago
i didn't express myself correctly. the use-value exists, definitely, but it's effect on exchange-value of the commodity is diminished as that commodity becomes widely used medium of exchange/store of value. gold's use-value in tech and jewelery is a small fraction of gold's exchange-value.
> One of the most interesting aspects of bitcoin is proponents fervently advocate for one element of the gold standard (a fixed supply), but not the other (something physical of utility).
if gold became useless for exchange purpose and only it's use-value was relevant, market price would go down to pretty much nothing, the scammiest cryptocurrency exit-scams would be brought to shame by that drop. so physical utility of gold has absolutely no relevance to gold-standard. even jewelery use-value was mostly driven by exchange-value, so that would become irrelevant as well and the market would be flooded by worthless golden trinkets and rings.
- throwaway-8c93 6y ago> gold's use-value in tech and jewelery is a small fraction of gold's exchange-value According to Wikipedia: "The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry.". Now, there are ETFs, futures, options, etc, that inflate the speculative portion, but the valuation due to physical properties is still likely within an order of magnitude of its total market value.
- keymone 6y agojewelery produced and stored is not necessarily jewelery used. jewelery inflates speculative portion as much if not more as other instruments you listed and if gold was stripped of it's exchange value, most of the jewelery in the world would be up for sale to recover at least some of the "investment" (even if that investment was inherited, which it is in vast majority of cases).