Why is Gold Valuable?

[tek inpektor]

I don't see why gold is valuable. I mean, if the U.S. dollar crashed my friend told me that we would use gold instead... I don't see why anyone would want gold instead of (for example) food.

I think that people would just barter (or trade if you don't know what barter means).

[Snickerzz]

Its hard to obtain and you cant make it

Also, the usd's value is based on how much gold we have (i think)

[Izaya Orihara]

It's valuable because 

1. It's pretty rare.

2. Like every currency on this planet or anything for that matter it has no value other than the one we give it.

3. It's a symbol for being rich. Like a real life e-peen.

4. It's used for electronics and stuff. 

[Mooshi]

Precious metal, rare  vs paper, artificial worth

[helping]

useful in non-credit, asset, or note based trading. 

 

It has some uses in electronics, it's kind of pretty.

 

otherwise it's mostly a given value, sure it's worth a lot but there are far more useful things to stockpile or hold to liquidate in the future instead of gold.

 

Its hard to obtain and you cant make it

Also, the usd's value is based on how much gold we have (i think)

USD is completely independent, gold standard was dropped ages ago.

[PillowSmoke]

Rarity.

[tek inpektor]

 

 

 

 

 

 

 

But what are you going to do with the metal in exchange for food or other items? Sit on it?

[/etarulf]

Well most of its value comes from its rarity. If there was only x amount of computer parts, they would be expensive. Basic supply and demand. The reason the US might use could if the dollar crashed is because that was the standard back in the day. The US used to be on the gold standard which means the value of money was based on the gold the Federal Reserve stored. I highly doubt we would ever go back to trading gold. People which just switch to a new existing currency

[/etarulf]

But what are you going to do with the metal in exchange for food or other items? Sit on it?

If it was a common accepted currency then you would use it like paper. Thats like saying what are you going to do with paper? Sit on it?

[CowsGoRoar]

It's the ONLY metal that lasts forever. Bronze will rust, silver rusts in a while, but gold says golden.

[zxcvbnmmssdh]

Its hard to obtain and you cant make it

Also, the usd's value is based on how much gold we have (i think)

It used to be, not anymore

 

OP: People think it is valuable

[/etarulf]

It's the ONLY metal that lasts forever. Bronze will rust, silver rusts in a while, but gold says golden.

Aluminum. It forms its own protective coating

[Izaya Orihara]

But what are you going to do with the metal in exchange for food or other items? Sit on it?

What do you do with money? You exchange it for other things. In the past people traded chickens for something else and the problem was that they need to find somebody that had a need for chicken and could give them what they wanted. And that's why we have money. It's a universial payment that can be exchanged for something else so that you don't have to run around and look for the person that has what you need. Very simple economy. 

[xXxYOLOxSWAGxXx_420BlazeIt]

Aluminum. It forms its own protective coating

It isnt rare, or as chemicaly stable as gold.

[/etarulf]

It isnt rare, or as chemicaly stable as gold.

 

i know that, i was correcting how he said gold was the only metal that lasts forever.

[tek inpektor]

What do you do with money? You exchange it for other things. In the past people traded chickens for something else and the problem was that they need to find somebody that had a need for chicken and could give them what they wanted. And that's why we have money. It's a universial payment that can be exchanged for something else so that you don't have to run around and look for the person that has what you need. Very simple economy. 

Yeah but I don't think there's enough gold to go around for that kind of thing......

[wng_kingsley7]

Isn't that a simple question to answer for yourself. Goods like gold ores, gems etc of course have materialistic value yet they don't have worth but given that human are beings that can dictate not only themselves a value but on objects like plots of land can easily trade & depict a amount of X.

[Izaya Orihara]

Yeah but I don't think there's enough gold to go around for that kind of thing......

There is enough. We can mesure 0.00000000000001 gramms so that's that. Also we won't be trading with gold anytime soon. The person that told you that isn't correct. 

[Wano97]

But what are you going to do with the metal in exchange for food or other items? Sit on it?

You buy other stuff with it, think about it, it'll work exactly the same as the currency we use right now. It's just paper we're using

[tek inpektor]

There is enough. We can mesure 0.00000000000001 gramms so that's that. Also we won't be trading with gold anytime soon. The person that told you that isn't correct. 

How are you going to store 0.00000000000001g of gold? Just roll up to Walmart with a microscopic gold collector?

[tek inpektor]

You buy other stuff with it, think about it, it'll work exactly the same as the currency we use right now. It's just paper we're using

What makes the paper valuable?

[T.Vengeance]

How are you going to store 0.00000000000001g of gold? Just roll up to Walmart with a microscopic gold collector?

And that's why we have cash. You're only allowed to print out a certain amount of cash based on how much gold a country has. If you overprint, that leads to inflation.

[Wano97]

What makes the paper valuable?

The ability to buy things with it

[Maslofski]

the whole gold of the world is as much as a big pool full of it. its rare so its used as spcial currency. diamonds for example are just getting cut in their flow, so theyre rare, but there are bunkers filled with them, wich makes them common, wich isnt the case with gold

[AlwaysFSX]

Because instead of trading it was easier to use some rare metal that is stable that can have a value assigned to it.