Why is gold worth so much?

[manlymatt83]

People keep saying that if the economy gets worse, stock up on gold. You can use it to buy toilet paper, etc.

 

[toekramp]

...

 

[EMPshockwave82]

because people equate precious metals to money when paper money is worth nothing

It's all perception. Gold is rare and it is a precious metal but I would rather have a skill than gold.


What's worth more in a primitive world where paper money is worth nothing? Gold or the ability to make knives / guns / gun powder / strong weapons?

Sure gold can buy those things, but if you can make them then you can make gold. It's all perception of money and what an item is worth.

 

[0roo0roo]

early metal that was rare and didn't tarnish

 

[Mo0o]

Originally posted by: EMPshockwave82
because people equate precious metals to money when paper money is worth nothing

It's all perception. Gold is rare and it is a precious metal but I would rather have a skill than gold.


What's worth more in a primitive world where paper money is worth nothing? Gold or the ability to make knives / guns / gun powder / strong weapons?

Sure gold can buy those things, but if you can make them then you can make gold. It's all perception of money and what an item is worth.

How can you equate a skill and a form of currency? Its comparing apples to oranges. The two aren't mutually exclusive. Even in a primitive world, assuming gold is in adequate abundance, it'll be used as currency so you might as well have a skill that'll give you gold to trade for other things. Barter economies are inefficient

 

[Aberforth]

I can turn metals into gold.

 

[EMPshockwave82]

Originally posted by: Mo0o

Originally posted by: EMPshockwave82
because people equate precious metals to money when paper money is worth nothing

It's all perception. Gold is rare and it is a precious metal but I would rather have a skill than gold.


What's worth more in a primitive world where paper money is worth nothing? Gold or the ability to make knives / guns / gun powder / strong weapons?

Sure gold can buy those things, but if you can make them then you can make gold. It's all perception of money and what an item is worth.

How can you equate a skill and a form of currency? Its comparing apples to oranges. The two aren't mutually exclusive. Even in a primitive world, assuming gold is in adequate abundance, it'll be used as currency so you might as well have a skill that'll give you gold to trade for other things. Barter economies are inefficient

Pretty sure that's what I meant.

but if you can make them then you can make gold

Skills are worth more than money or people wouldnt pay for them................

 

[DangerAardvark]

It's shiny.

 

[theflyingpig]

As an alchemist, I find gold to be one of the most common elements. It was incredibly rare about a hundred years ago, but now you can find gold anywhere. This is due to alchemy. No one will admit it, but it's true.

The value of gold is only partly artificial. You see, the only way to transmute a substance into gold is to use what is known as the "Philosophers Stone". What is not commonly known, is that the Philosophers Stone is not something that can be found. It must be made. There is a high cost to creating it though. To make mine, I had to slaughter ten thousand innocents. This proved difficult, but I went through with it, and my efforts were rewarded with the ability to make gold.

What does this have to do with the relative worth of gold? I'll tell you why. To my knowledge there are only three Philosophers Stones in the world. I have one, and two others, who I shall not mention by name have them. We three are the ones who create all of the gold in the world. It is we who control the price of gold.

 

[Kirby]

bling bling

 

[wwswimming]

it's not that gold is worth so much, it's that the dollar is more closely resembling
a piece of paper.

 

[IHateMyJob2004]

Gold .... we dig it out of the ground, refine it and put it back into the ground. I don't get it.

It's price is based on perception and it's value is based on nothing.

Wait for the gold bubble to pop. That should be amusing.

 

[IHateMyJob2004]

Originally posted by: Mo0o

Originally posted by: EMPshockwave82
because people equate precious metals to money when paper money is worth nothing

It's all perception. Gold is rare and it is a precious metal but I would rather have a skill than gold.


What's worth more in a primitive world where paper money is worth nothing? Gold or the ability to make knives / guns / gun powder / strong weapons?

Sure gold can buy those things, but if you can make them then you can make gold. It's all perception of money and what an item is worth.

How can you equate a skill and a form of currency? Its comparing apples to oranges. The two aren't mutually exclusive. Even in a primitive world, assuming gold is in adequate abundance, it'll be used as currency so you might as well have a skill that'll give you gold to trade for other things. Barter economies are inefficient

A skill with certainly provide you with future free cash flows. What will gold certainly give you?

 

[BigJelly]

Originally posted by: wwswimming
it's not that gold is worth so much, it's that the dollar is more closely resembling
a piece of paper.

/thread

 

[IronWing]

Because, gold, she'd pretty much have to.

 

[Colt45]

When the dollar left the gold standard, it was worth something like $25/oz, IIRC.


So.. dollar fail.

 

[coolVariable]

I read somewhere that the amount of gold mined throughout history could barely fill two Olympic swimming pools.

 

[imported_Imp]

Originally posted by: IHateMyJob2004
Gold .... we dig it out of the ground, refine it and put it back into the ground. I don't get it.

It's price is based on perception and it's value is based on nothing.

Wait for the gold bubble to pop. That should be amusing.

That's what I've read. Price for it is way over-inflated right now.

 

[XZeroII]

Originally posted by: coolVariable
I read somewhere that the amount of gold mined throughout history could barely fill two Olympic swimming pools.

http://money.howstuffworks.com/question213.htm

 

[miketheidiot]

Originally posted by: wwswimming
it's not that gold is worth so much, it's that the dollar is more closely resembling
a piece of paper.

funny, i coudl have sworn that the dollar was at a recent high

 

[miketheidiot]

gold is the original fiat currency.

 

[quakefiend420]

Originally posted by: miketheidiot
gold is the original fiat currency.

do you know what the word fiat means?

 

[quakefiend420]

Originally posted by: miketheidiot

Originally posted by: wwswimming
it's not that gold is worth so much, it's that the dollar is more closely resembling
a piece of paper.

funny, i coudl have sworn that the dollar was at a recent high

other currencies weakening more quickly than the USD != the USD is strong

 

[erub]

Originally posted by: quakefiend420

Originally posted by: miketheidiot

Originally posted by: wwswimming
it's not that gold is worth so much, it's that the dollar is more closely resembling
a piece of paper.

funny, i coudl have sworn that the dollar was at a recent high

other currencies weakening more quickly than the USD != the USD is strong

actually, it kinda does. Its all relative. Commodities other than gold haven't been rising to reflect the weakening dollar, as we saw last sprint/summer.

 

[nerp]

Originally posted by: IHateMyJob2004
Gold .... we dig it out of the ground, refine it and put it back into the ground. I don't get it.

It's price is based on perception and it's value is based on nothing.

Wait for the gold bubble to pop. That should be amusing.

Seriously. Tempted to go short on gold soon.