Originally Posted By: haertig
I don't see gold being of much use unless you're planning on plating contacts on electronic equipment. Other than that, what is it really good for except making Bling-Bling jewelry for people who want to call attention to themselves? It's just a heavy, soft, shiney metal that happens to conduct electricity well. Nothing really magical about it that I can see.

There's a good reason why gold has been chosen as money for the last 5,000+ years. It has all the qualities that make it the ideal money. There have been many forms of money... Stones, diamonds, carvings, fur, seashells, foodstuffs, and paper money to name only a few. All of those have shortcomings.

Gold is the perfect form of money because it is:
  • rare - unlike paper fiat currencies that can be created at will or like seashells that are virtually limitless, gold is scarce. This doesn't make gold worth more, but it certainly means that gold will not be worth less over time.
  • divisible - it is infinitely divisible and can be made into small or large coins and can be weighed with precision - unlike carvings of wood or seashells for instance.
  • homogeneous - my gold is the same as your gold. melt them together and there is no difference - unlike diamonds where every diamond is unique
  • portable - it is compact and can be easily carried to use in transactions - unlike Pacific Island stones or furs which can't be carried easily
  • durable - gold is extremely durable compared to other forms of money - unlike fur for instance which wears out and can be damaged easily or foodstuffs.
  • has intrinsic value - gold has intrinsic value because it is beautiful and can be made into other products and does not need a value assigned to it by others. paper currencies with no backing cannot stand up to this over the course of time since they have no intrinsic value.
  • Veritable - gold can easily be verified as genuine. Unlike paper currencies or even coins made with base metals, it is impossible to counterfeit gold coins. You might pass one off for a short time, but there are simple tests (weight, dimensions, specific gravity) that anyone can perform with the most rudimentary tools to confirm if your coin is genuine gold. (A ruler, a scale and a beaker of water in this case).
  • Workable - Gold is malleable and can be easily and cheaply worked into coinage or bars unlike some other metals that are very hard such as tungsten, or items that are expensive to fashion into their final state, such as wood carvings or diamonds.

Over the last 100 years or so, gold has been demonized as a barbaric relic and a terrible currency. This is put forward by those who want a currency that can be manipulated, controlled, and expanded at will, and to their advantage. This is to the detriment of the common man. The best currency for the poor man is gold since it's value cannot be diminished by the actions of bankers and politicians.

Eventually ALL paper currencies fail. They are ALWAYS replaced with gold. That is the history of mankind. You are right in the middle of one of those transitions and it's taking place right before your eyes. My friendly advice to all is to embrace this repetition of history, understand it, and protect yourself from the destruction of paper currencies that is taking place now throughout the western world.


Edited by NuggetHoarder (08/11/11 11:51 AM)
Edit Reason: added "workable"