4 ms·

Gold has material use. You can make things with it.

Icathian 5y ago
Okay, but the value of gold has basically zero relationship to it's industrial or commercial uses, so that isn't really relevant here.
- lotsofpulp 5y ago
  There could be some value attributed to being able to use gold as a store of value and currency in the event of a dissolution of modern society such that the internet or widespread electricity is no longer around.
  - danielbarla 5y ago
    Sure, but this is based on the idea that the innate uses and value of gold would be similar (or "relatively high") after such a transformation of the world. This is not clear to me at all, compared to say, a similar wealth invested into a large cache of firearms and ammo. Or whatever will happen to be useful, depending on the scenario. It reminds me of an anecdote from my grandfather from the end of WW2, people were giving away gold rings for loaves of bread. (Clearly, only when in desperate need, but it did happen.)
    - lotsofpulp 5y ago
      Firearms and ammo are a necessity, but one person/small tribe can only defend against so many others. What you really need is a community (or bigger tribe) that will come to your aid, and the community will need to be able to trade between themselves and others, which is where gold comes in.
  - rainbowzootsuit 5y ago
    In that situation, the inability to eat it or shoot something with it is probably going to make gold/silver pretty close to worthless as well until society re-exists. Even if the US government ceases to exist, the features of non reproducibility built into cash dollars (watermarks, intaglio printing) would still exist although they won't be as ultimately durable into the future as an element. At least you can also use them as fire starters.
    - jpdb 5y ago
      Paper money has a lower bound of material value equal to $(toilet paper - utility value for the comfort of toilet paper over a dollar bill) per square inch.
  - booleandilemma 5y ago
    By that point you're going to have bigger things to worry about, like where to get fresh water and go to bathroom. And people with guns are going to quickly steal your gold anyway.
- ddevault 5y ago
  Gold is also the most reasonable element to use as a store of value. It isn't very reactive or radioactive, so it's stable for long periods of time, it's a solid at room temperature, it's not hazardous to human health, it's easily manipulated and formed, and it's not super abundant but also not super rare. Silver is the only other element that comes close, and it tarnishes.
teawrecks 5y ago
Then why don't we all use gold as payment?
- jcbrand 5y ago
  We used to (indirectly at least) until 1971 when the US went off the gold standard in order to not be bankrupted by the Vietnam war

Okay, but the value of gold has basically zero relationship to it's industrial or commercial uses, so that isn't really relevant here.

lotsofpulp 5y ago
There could be some value attributed to being able to use gold as a store of value and currency in the event of a dissolution of modern society such that the internet or widespread electricity is no longer around.
- danielbarla 5y ago
  Sure, but this is based on the idea that the innate uses and value of gold would be similar (or "relatively high") after such a transformation of the world. This is not clear to me at all, compared to say, a similar wealth invested into a large cache of firearms and ammo. Or whatever will happen to be useful, depending on the scenario. It reminds me of an anecdote from my grandfather from the end of WW2, people were giving away gold rings for loaves of bread. (Clearly, only when in desperate need, but it did happen.)
  - lotsofpulp 5y ago
    Firearms and ammo are a necessity, but one person/small tribe can only defend against so many others. What you really need is a community (or bigger tribe) that will come to your aid, and the community will need to be able to trade between themselves and others, which is where gold comes in.
- rainbowzootsuit 5y ago
  In that situation, the inability to eat it or shoot something with it is probably going to make gold/silver pretty close to worthless as well until society re-exists. Even if the US government ceases to exist, the features of non reproducibility built into cash dollars (watermarks, intaglio printing) would still exist although they won't be as ultimately durable into the future as an element. At least you can also use them as fire starters.
  - jpdb 5y ago
    Paper money has a lower bound of material value equal to $(toilet paper - utility value for the comfort of toilet paper over a dollar bill) per square inch.
- booleandilemma 5y ago
  By that point you're going to have bigger things to worry about, like where to get fresh water and go to bathroom. And people with guns are going to quickly steal your gold anyway.
ddevault 5y ago
Gold is also the most reasonable element to use as a store of value. It isn't very reactive or radioactive, so it's stable for long periods of time, it's a solid at room temperature, it's not hazardous to human health, it's easily manipulated and formed, and it's not super abundant but also not super rare. Silver is the only other element that comes close, and it tarnishes.

teawrecks 5y ago

Then why don't we all use gold as payment?

jcbrand 5y ago
We used to (indirectly at least) until 1971 when the US went off the gold standard in order to not be bankrupted by the Vietnam war