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> I will never understand the idea of gold as a supposedly crisis-proof currency. Doesn't gold have some unique material properties that will likely always be

> I will never understand the idea of gold as a supposedly crisis-proof currency. Doesn't gold have some unique material properties that will likely always be in demand? It is malleable and ductile, inert/doesn't oxidize, I believe it is resistant to fatigue, is a good conductor, and lots of others. And as a bonus, it is shiny and pretty. I'm not sure how many of those properties really matter in an active-war Mad Max scenario, but gold has been valued by societies throughout history for good reasons. If the shit really hits the fan, legal tender will only have some use as maybe toilet paper and kindling.

BjoernKW 3y ago
Those are physical properties rather than economic ones. Gold not oxidising (and metal elements in general being durable) makes it a natural medium for exchanging value. However, that value still is imaginary. Without being backed by a country / an economic system, and the mere belief that it is valuable, gold has very little value, especially when considering what essentially is a doomsday scenario, in which people probably have more pressing needs than refining and processing gold.
- logicalmonster 3y ago
  Thank you for your response. Based on your comment, you seem to be operating close to the idea that economic value comes from government dictate. If this is the case, I suppose there's no reconciling our respective positions. (And no problem with that, you're entitled to your opinion) My belief is that all value is subjective in nature. Economic value is not a property of nature: it's just subjective. A thing has value in a trade not because some authority says it has value, but because everybody values what they receive in a trade more than what they give up.
  - BjoernKW 3y ago
    > economic value comes from government dictate Quite to the contrary. Economic value originates from the benefit a product or service provides, nothing else. Currency (particularly if of the fiat money variety) on the other hand, has no inherent value: You can't eat it, you can't use it to build something. Its value depends entirely on the trust people have in the issuing authority.

BjoernKW 3y ago

Those are physical properties rather than economic ones. Gold not oxidising (and metal elements in general being durable) makes it a natural medium for exchanging value. However, that value still is imaginary. Without being backed by a country / an economic system, and the mere belief that it is valuable, gold has very little value, especially when considering what essentially is a doomsday scenario, in which people probably have more pressing needs than refining and processing gold.

logicalmonster 3y ago
Thank you for your response. Based on your comment, you seem to be operating close to the idea that economic value comes from government dictate. If this is the case, I suppose there's no reconciling our respective positions. (And no problem with that, you're entitled to your opinion) My belief is that all value is subjective in nature. Economic value is not a property of nature: it's just subjective. A thing has value in a trade not because some authority says it has value, but because everybody values what they receive in a trade more than what they give up.
- BjoernKW 3y ago
  > economic value comes from government dictate Quite to the contrary. Economic value originates from the benefit a product or service provides, nothing else. Currency (particularly if of the fiat money variety) on the other hand, has no inherent value: You can't eat it, you can't use it to build something. Its value depends entirely on the trust people have in the issuing authority.