4 ms·

While there are certainly some valuable properties to gold, one has to wonder how much of the value we place on gold is extrinsic.

jrockway 12y ago
Gold is important to industry because it's conductive and doesn't oxidize. It's used for plating PCB pads and metal-to-metal contacts. Of course, you only need a tiny, tiny amount relative to a watch to plate a PCB or connector.
- mathgeek 12y ago
  Yep. That's what I meant by the valuable properties.
  - jrockway 12y ago
    Theoretically this is why it has value for hoarders; it's useful. Of course, if suddenly gold was unfashionable and was only needed for plating connectors, I doubt you'd get $1200 an ounce. But it will probably stay fashionable because people like the color. (As someone who regularly uses public transportation, I personally won't be getting a gold watch. But I see the appeal.)
  - baddox 12y ago
    Why is the willingness of people to pay a lot of money for something because they like its texture or color and more "extrinsic value" than the willingness of people to pay a lot of money for something because they like its corrosion resistance?
    - function_seven 12y ago
      I would say it's not. But I bet you if you came up with a replacement alloy that had the same exact texture and color as gold, people would not knowingly pay the same money for it. Just like lab diamonds can be grown to look even better than mined diamonds, the fact that they're from a lab still (sadly) diminishes their value.
    - mathgeek 12y ago
      You read into my comment as a statement of mutual exclusiveness, perhaps?
code_duck 12y ago
You could determine that by evaluating the proportion of gold that is used for industrial applications versus ornamentation. Based on my vague Internet research, I believe about three quarters of the gold consumed each year becomes a jewelry. That suggests that much of the value is linked to social status.

jrockway 12y ago

Gold is important to industry because it's conductive and doesn't oxidize. It's used for plating PCB pads and metal-to-metal contacts. Of course, you only need a tiny, tiny amount relative to a watch to plate a PCB or connector.

mathgeek 12y ago
Yep. That's what I meant by the valuable properties.
- jrockway 12y ago
  Theoretically this is why it has value for hoarders; it's useful. Of course, if suddenly gold was unfashionable and was only needed for plating connectors, I doubt you'd get $1200 an ounce. But it will probably stay fashionable because people like the color. (As someone who regularly uses public transportation, I personally won't be getting a gold watch. But I see the appeal.)
- baddox 12y ago
  Why is the willingness of people to pay a lot of money for something because they like its texture or color and more "extrinsic value" than the willingness of people to pay a lot of money for something because they like its corrosion resistance?
  - function_seven 12y ago
    I would say it's not. But I bet you if you came up with a replacement alloy that had the same exact texture and color as gold, people would not knowingly pay the same money for it. Just like lab diamonds can be grown to look even better than mined diamonds, the fact that they're from a lab still (sadly) diminishes their value.
  - mathgeek 12y ago
    You read into my comment as a statement of mutual exclusiveness, perhaps?

code_duck 12y ago

You could determine that by evaluating the proportion of gold that is used for industrial applications versus ornamentation. Based on my vague Internet research, I believe about three quarters of the gold consumed each year becomes a jewelry. That suggests that much of the value is linked to social status.