No. Precious metals have intrinsic value. Fiat money does not. The fact USD is legal tender makes it legal tender but that's it. It does not give it intrinsic v

No. Precious metals have intrinsic value. Fiat money does not. The fact USD is legal tender makes it legal tender but that's it. It does not give it intrinsic value. (Or, pedantically, the paper the USD is printed on has some intrinsic value, about $100/ton.) "Fiat money, such as paper dollars, is money without intrinsic value: It would be worthless if it were not used as money." -- from Principles of Economics, Volume 1, http://books.google.com/books?id=oRgQ2goeFzwC&pg=PA659&q=fiat+money+&hl=en#v=snippet&q=fiat%20money&f=false http://books.google.com/books?id=oRgQ2goeFzwC&pg=PA659&q=fia... I don't mean to be rude, but I am always surprised by discussions about money. They reveal that people have no idea what money is and what gives it value.