The reality is currency is NOT backed by gold, gold IS backed by currency.. Why does anyone want gold? Only because it's redeemable for cash. It's cash value IS it's only value. No one cares that money isn't worth gold, but no one would even want gold if it weren't worth money.
Gold never had inherent value.nit has no more inherent value than cash does.
Agree. Anything could be means of exchange. if it have trust and agreement among users. Gold once was just a utility metal among Natives of Americas and not a currency. There is no any guarantee that it will not become just utility metal again.
I think there are no any substance or objects that have some absolute value as currency and in any circumstances could be means of exchange. Currency is more social phenomena than something absolute.
From the other side currency is just a tool to solve some problem, which is useful as long, as it solves that problem or problem itself exists. It is not very hard to imagine situations when there are no any need for any currency at all, since it is jut not needed or have no any sense, like, IDK, horseshoe in 21 century. If you have some advanced 3D printer working on subatomic level, something like StarTrek replicator, f.e. what is the purpose of currency will be?
You literally don't even know what money is do you? What you think money is, is just a system of promissory notes, and tokens. True money is made out of actual resources, and nothing holds more value, or last longer then metal.
Gold has no inherent value, certainly not an actual resource without the projection of value on it. It is only valuable because it's worth money right now, and historically it's only value was we said it had value.
It literally is not a resource. As someone in this thread pointed out, if you were going to stay on a desert island it would not even make a list of 1000 items to bring along because it has no inherent value.
Wood is literally more useful.
So gold becoming a resource in the 20th century because they finally found a use for it Wich is in computers is why it has been valuable for 12,000 years? I seriously doubt that
Again, gold has just recently become a resource. Historically it's only value has been that we use it to project value on.
It's only value to anyone is that it's worth money. If it didn't have a cash value you wouldn't want it.
Doni think that money is just empty little notes? Absolutely, just like gold it's only value is that we use it to project value on to it. Noether the paper, not the gold that used to back it like 49!years ago have ANY inherent value.
Their value is a circular flow chart. Money has value because 40 years ago it was backed by gold. Gold has value because it's worth money.
Your concept of 'inherent value' is flawed. As you yourself have stated, "gold has no more value then flower bulbs." Where as in fact, all value is assigned by it's use, as that is the bases of the word "value" . Value is derived and assigned due to it's usefulness.
Or, to put it another way, one can just as easily state, "all things have inherent value".
Right and the value of gold that was assigned by it's use has simply been that it has value. It has had no use for thousands of years until recently with computers which has nothing to do with why it is so valued.
But your begining to catch on. It is an arbitrary proxy of value that has no use other than as a proxy for value which is why the cultures that weren't born from Babylon did not value it at all.
Be ause it is rare and has no use most cultures in earth did not assign it any value at all until they were dominated by the beast that emerged from Babylon.
So basicly the assigning of value to it has been somewhat of a mental illness.
And no, it is not just as easy to say all things have inherent value. More accurate to say that no thing has any inherent value.
But t least things like wood and regular stone have lots of uses and in so much you can say they have a tual value where you can't say that with gold unless your making a computer.
As someone else pointed out in this thread. If you were going to have to survive on a desert island gold would not even make your list of 1000 things to bring because it would have zero uses for you.
Gold is money because it's rare and can't be counterfeited. Now apply that to any modern currency and see if it holds up.
You miss the point when you say gold has no uses. Gold's utility is in its qualities that make it a good form of money. The global digital age reduces that somewhat, hence the discussion of digital gold.
Perhaps you can answer me this: if gold's only value is because it is worth money then why do central banks like the Federal Reserve hold large quantities of it on their balance sheets? They have the ability to create an infinite supply of currency, so by your reasoning they shouldn't value gold.
The reality is currency is NOT backed by gold, gold IS backed by currency.. Why does anyone want gold? Only because it's redeemable for cash. It's cash value IS it's only value. No one cares that money isn't worth gold, but no one would even want gold if it weren't worth money.
Gold never had inherent value.nit has no more inherent value than cash does.
Agree. Anything could be means of exchange. if it have trust and agreement among users. Gold once was just a utility metal among Natives of Americas and not a currency. There is no any guarantee that it will not become just utility metal again.
I think there are no any substance or objects that have some absolute value as currency and in any circumstances could be means of exchange. Currency is more social phenomena than something absolute.
From the other side currency is just a tool to solve some problem, which is useful as long, as it solves that problem or problem itself exists. It is not very hard to imagine situations when there are no any need for any currency at all, since it is jut not needed or have no any sense, like, IDK, horseshoe in 21 century. If you have some advanced 3D printer working on subatomic level, something like StarTrek replicator, f.e. what is the purpose of currency will be?
You literally don't even know what money is do you? What you think money is, is just a system of promissory notes, and tokens. True money is made out of actual resources, and nothing holds more value, or last longer then metal.
Gold has no inherent value, certainly not an actual resource without the projection of value on it. It is only valuable because it's worth money right now, and historically it's only value was we said it had value.
It literally is not a resource. As someone in this thread pointed out, if you were going to stay on a desert island it would not even make a list of 1000 items to bring along because it has no inherent value.
Wood is literally more useful.
So gold becoming a resource in the 20th century because they finally found a use for it Wich is in computers is why it has been valuable for 12,000 years? I seriously doubt that Again, gold has just recently become a resource. Historically it's only value has been that we use it to project value on.
It's only value to anyone is that it's worth money. If it didn't have a cash value you wouldn't want it.
Doni think that money is just empty little notes? Absolutely, just like gold it's only value is that we use it to project value on to it. Noether the paper, not the gold that used to back it like 49!years ago have ANY inherent value.
Their value is a circular flow chart. Money has value because 40 years ago it was backed by gold. Gold has value because it's worth money.
Your concept of 'inherent value' is flawed. As you yourself have stated, "gold has no more value then flower bulbs." Where as in fact, all value is assigned by it's use, as that is the bases of the word "value" . Value is derived and assigned due to it's usefulness.
Or, to put it another way, one can just as easily state, "all things have inherent value".
https://gsiexchange.com/what-is-gold-used-for-20-common-uses-for-gold/
Right and the value of gold that was assigned by it's use has simply been that it has value. It has had no use for thousands of years until recently with computers which has nothing to do with why it is so valued.
But your begining to catch on. It is an arbitrary proxy of value that has no use other than as a proxy for value which is why the cultures that weren't born from Babylon did not value it at all.
Be ause it is rare and has no use most cultures in earth did not assign it any value at all until they were dominated by the beast that emerged from Babylon.
So basicly the assigning of value to it has been somewhat of a mental illness.
And no, it is not just as easy to say all things have inherent value. More accurate to say that no thing has any inherent value.
But t least things like wood and regular stone have lots of uses and in so much you can say they have a tual value where you can't say that with gold unless your making a computer.
As someone else pointed out in this thread. If you were going to have to survive on a desert island gold would not even make your list of 1000 things to bring because it would have zero uses for you.
Gold is money because it's rare and can't be counterfeited. Now apply that to any modern currency and see if it holds up.
You miss the point when you say gold has no uses. Gold's utility is in its qualities that make it a good form of money. The global digital age reduces that somewhat, hence the discussion of digital gold.
Perhaps you can answer me this: if gold's only value is because it is worth money then why do central banks like the Federal Reserve hold large quantities of it on their balance sheets? They have the ability to create an infinite supply of currency, so by your reasoning they shouldn't value gold.