Gold, Currency and Bad Advice

[marksoc]

gold's value has little to nothing to do with industrial use. again, gold is real money. it's hard money. it's a tangible asset because it has intrinsic value

No it doesn't. It is an exchange medium, good because is rare, divisible and shiny. But its value is not intrinsic.

 

[redrum]

No it doesn't. It is an exchange medium, good because is rare, divisible and shiny. But its value is not intrinsic.

sorry mark. you are dead wrong.

gold most definitely has intrinsic value. the finished product that we all know as gold takes effort to achieve. it takes time, energy and resources to locate it, dig it out of the ground, refine it, distribute it...etc.

fiat currency by contrast has zero intrinsic value. it is backed only by the promise of the government. if said govt fails, then so does its currency.

gold on the other hand has zero counter party risk, meaning it is not dependent upon a third party's debt terms compliance. this is what we mean when we say that gold has intrinsic value. it is the gold itself that has value.

these items, combined with its scarcity and commercial/industrial use(albeit small) makes gold a unique commodity that, along with silver, has a dual use/nature. it is both a commodity AND real money. part of this unique duality is what you mention....i.e. small denomination, it's portable, it's appealing to the eye...etc.

in short, its value is intrinsic.

 

[tf33]

• In 1935, when an ounce of gold was worth $35, you could buy:
• a top-quality tailored suit for $19.75 – or 0.56 ounces of gold
• a family car for $500 – or 14.3 ounces of gold
• a house for $7,150 – or 204.2 ounces of gold

• Today, with gold at $1,060 an ounce:
• that same top-quality, tailored suit costs $600 – or 0.56 ounces of gold
• the family car now costs $15,000 – or 14.2 ounces of gold
• the house averages $181,100* – or 204.6 ounces of gold

reflect on that a bit.

 

[arty]

I remember when gold was $400 USD an ounce, I would sit with my brother smoking weed saying how we should be buying ounces of gold instead of ounces of weed (at $400+ an ounce).

Oh well.....

 

[hannstew]

I remember when gold was $400 USD an ounce, I would sit with my brother smoking weed saying how we should be buying ounces of gold instead of ounces of weed (at $400+ an ounce).

Shoulda, coulda woulda,.. At the price you were probably paying for weed then compared to the cost of gold now, you would have more than quadrupled your money, or better, but I bet it was a good time that you dont remember much of.. Damn the luck..