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If gold’s monetization demand disappeared overnight, 37% of its current demand is not sufficient to keep the price nearly as high as it is now. > In a very rea

by wyager 5y ago

If gold’s monetization demand disappeared overnight, 37% of its current demand is not sufficient to keep the price nearly as high as it is now. > In a very real way it’s inherently worth more than copper or steel. Can you explain what you mean by this? Usually when people say things like this they haven’t thought it through.

thehappypm 5y ago
Gold is valuable because of its chemical properties, it is almost completely inert/rust-proof and one of the best conducting materials. It's a very useful material for electronic conductors for that reason.
- wyager 5y ago
  Do you think most gold investors are hoping to turn their bullion into conductors? Incidentally, Bitcoin is also rust-proof.
  - deleted 5y ago
    [deleted]
  - thehappypm 5y ago
    Gold has intrinsic value because it has uses (like conductors and jewelry). Bitcoin has no intrinsic value.
  - benibela 5y ago
    But without rust it is unsafe
- kemonocode 5y ago
  Gold is very inert, yes, but it still gets beaten by copper when it comes to conductivity [0] which is why conductors are rarely ever made out of gold instead of merely gold-plated. Gold's industry use remains negligible in the great scheme of things and only a very small fraction of its value is derived from its industrial uses. It's valuable but not that valuable. [0] https://www.bluesea.com/resources/108/Electrical_Conductivity_of_Materials/ https://www.bluesea.com/resources/108/Electrical_Conductivit...
  - Retric 5y ago
    Gold’s industrial use is low because of it’s high price not it’s utility. Drop it’s price by say 95% long term and it’s use by industry would dramatically increase, and mining would tank. Eventually after the already mined gold was used up it’s value would shoot back up. Conversely, this means it’s value as a hedge is also going to stay. Some can take gold today burry it in a hole and know it’s going to still be valuable when they or their descendent pulls it out of the ground in 50 years. It’s not going to appreciate they way stocks do, but it’s also not going to 0 the way stocks occasionally do either.

by wyager 5y ago

thehappypm 5y ago

Gold is valuable because of its chemical properties, it is almost completely inert/rust-proof and one of the best conducting materials. It's a very useful material for electronic conductors for that reason.

wyager 5y ago
Do you think most gold investors are hoping to turn their bullion into conductors? Incidentally, Bitcoin is also rust-proof.
- deleted 5y ago
  [deleted]
- thehappypm 5y ago
  Gold has intrinsic value because it has uses (like conductors and jewelry). Bitcoin has no intrinsic value.
- benibela 5y ago
  But without rust it is unsafe
kemonocode 5y ago
Gold is very inert, yes, but it still gets beaten by copper when it comes to conductivity [0] which is why conductors are rarely ever made out of gold instead of merely gold-plated. Gold's industry use remains negligible in the great scheme of things and only a very small fraction of its value is derived from its industrial uses. It's valuable but not that valuable. [0] https://www.bluesea.com/resources/108/Electrical_Conductivity_of_Materials/ https://www.bluesea.com/resources/108/Electrical_Conductivit...
- Retric 5y ago
  Gold’s industrial use is low because of it’s high price not it’s utility. Drop it’s price by say 95% long term and it’s use by industry would dramatically increase, and mining would tank. Eventually after the already mined gold was used up it’s value would shoot back up. Conversely, this means it’s value as a hedge is also going to stay. Some can take gold today burry it in a hole and know it’s going to still be valuable when they or their descendent pulls it out of the ground in 50 years. It’s not going to appreciate they way stocks do, but it’s also not going to 0 the way stocks occasionally do either.