For the reasons why it was considered money in the first place
1. It is rare
2. It is durable
3. It is easy to exchange
How easy is it to exchange gas or water?
The Value of Gold
- Thread starter s_lone
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For the reasons why it was considered money in the first place
1. It is rare
2. It is durable
3. It is easy to exchange
How easy is it to exchange gas or water?
lol they'd know what it was if it was the root of all currency. And you wouldn't need fort knox to hold 15g of it, which is all there is. :0)
Gold is great, silver is better. But don't bet the farm. I think most crisis mongers likely have a stash of bullion silver coins somewhere. They'll do wonders in any future economic scare where the value of paper dollars is in question. The traditional ratio of gold to silver has broken down and you'll regularly hear analysts gloat that any return to form should appreciably benefit the white metal. But I've heard that for quite awhile too. The traditional silver to gold ratio seems to vary between 10 and 16:1. So you can see how skewed present valuation are. There are lots of ways to invest in metals and there an equal number of ways to lose your shirt. But most advisers would think you should have some core position. Hmmmmmm, the Dow is breaking new ground, the markets look hot again. It must make the goldbugs shake their well-shook heads.
It is extremely malleable, electrically and thermally conductive, it alloys easily, it colors glass nicely, it reflects, etc. Those qualities are fairly practical, IMO.
So here I am in 2023... I'm a father of 2 children and I just lost my job. In fact, everyone where I live pretty much lost their jobs because where I live is in the city, where valuable natural ressources don't tend to grow. The world has become so scarce that natural ressources are the ONLY bargaining factor and gold is judged upon its practical value, not its symbolical value. What will be the value of gold and the value of all money then?
lol. Me too, all of the above...Cool, I just learned as well.
yah, what Kreskin said
I am a "Multi" button Master!
I always thought the ratio ranged from 40:1 to 60:1.
That's a very long and involved discussion on the nature of money.
However, for the Readers Digest version, "money" is a store of value, a medium of exchange and a unit of account. It is also whatever people believe it is. Different societies have used different objects for money - gold, silver, paper money, animals, cigarettes, clam shells, even giant shells at the bottom of the ocean that cannot be accessed!
Generally money is of symbolic value. What is a "dollar" exactly? It is an intangible representation of what people accept as value, nothing more. But people use dollars or any other currency because it facilitates economic transactions. It has value because people believe it has value. If people stopped having faith in the currency, its value would collapse.
I always thought the ratio ranged from 40:1 to 60:1.
That's a very long and involved discussion on the nature of money.
However, for the Readers Digest version, "money" is a store of value, a medium of exchange and a unit of account. It is also whatever people believe it is. Different societies have used different objects for money - gold, silver, paper money, animals, cigarettes, clam shells, even giant shells at the bottom of the ocean that cannot be accessed!
Generally money is of symbolic value. What is a "dollar" exactly? It is an intangible representation of what people accept as value, nothing more. But people use dollars or any other currency because it facilitates economic transactions. It has value because people believe it has value. If people stopped having faith in the currency, its value would collapse.