"Gold has very little intrinsic value"

No, gold is only desired and demanded in a country that can use it.

Which is only every country that has ever existed ever.

People who need food right away can't afford to wait until he can walk 100 miles to get food in exchange, gold is worthless to him.

That's sort of like saying that oil doesn't have energy in it unless you have an engine. The gold has value, even if it is far away. Just because someone isn't strong enough to get a hold of it doesn't take away from the fact that that gold has intrinsic value, just like oil has intrinsic energy. It's location doesn't matter. If you have it, but don't have an engine to burn it in, it still has energy inside it. You could even trade it to someone with an engine for some gold, if you wanted to.

The economy is the "economic engine" that "burns" gold, without people, gold is just a store of value, just like oil is a store of energy. If someone hits a new source of oil and floods the market, the price of oil goes down, but the amount of energy contained within each unit of oil does not change. It is much the same with gold, except that gold is even more interesting, since it isn't used up during value extraction. It can continue to be traded time and again. If you have gold, then you have value.

not everybody in this world knows what gold is.

Sure, and not everyone in the world knows what oil is, but that doesn't mean it doesn't have energy in it. As an aside, though, I would say that yes, EVERYONE IN THE WORLD knows what gold is, or at least a large enough proportion (ie discounting the mentally deficient and very young children) know what it is, and will gladly trade goods and services in exchange for gold.
 
That's sort of like saying that oil doesn't have energy in it unless you have an engine.

No, that's a terrible analogy. Stored Energy is an intrinsic physical property of all materials.

Value on the other hand, is purely subjective.

One can measure the exact amount of energy contained in a gallon of oil. You can get a precise number, and that number will be accurate and not change(not for a long time anyway).

On the other hand, you cannot do this with value. I have repeatedly asked someone to try and do this ...and no one has been able to. Why is no one able to exactly quantify the value of an ounce of gold? (Hint: Because it is subjective and constantly changing)
 
I still cant believe so many of you simultaneously believe in an intrinsic value theory and free market economics. Talk about cognitive dissonance.......my god, it seems some of you are more confused than the neocons.

My God
I cannot believe some of you still do not even understand what the word intrinsic means
 
My God
I cannot believe some of you still do not even understand what the word intrinsic means

I understand exactly what it means. What do you think I am misunderstanding?

In the text you quoted I referred to the "intrinsic value theory", which has a different meaning than the word "Intrinsic" by itself.
 
No, that's a terrible analogy. Stored Energy is an intrinsic physical property of all materials.

Value on the other hand, is purely subjective.

One can measure the exact amount of energy contained in a gallon of oil. You can get a precise number, and that number will be accurate and not change(not for a long time anyway).

On the other hand, you cannot do this with value. I have repeatedly asked someone to try and do this ...and no one has been able to. Why is no one able to exactly quantify the value of an ounce of gold? (Hint: Because it is subjective and constantly changing)

No, you can't measure it, because EVERYTHING ELSE is changing. Humans hold the value of their medium of exchange constant. This is why people don't notice inflation. They think that prices are just going up. When the value of EVERYTHING is changing, you can always set one thing as constant. What you chose as your constant determines the stability of pricing. Endlessly reproducible paper notes, rare nearly indestructible gems, or indestructible, rare, easily divisible metals will each have different amounts of inherent value when set as a constant which can be measured by the amount of fluctuation in prices when the value of other materials is set in terms of that material.

We consider gold to have a high intrinsic value TO HUMANS because it is ALWAYS valued as a means of exchange, though the Western World has managed to usurp the laws of nature for the last generation or so, which has obscured the intrinsic value of gold as universal currency and given that property to endlessly reproducible paper notes. This has brought to the fore the difference between price and value. Goods and services can be priced in dollars, but those dollars have no value, save by declaration of the state. The paper has little intrinsic value (what little it has is due to its usefulness as kindling or wallpaper), because it can be reproduced easily.

Gold has a lot of intrinsic value, because when you buy something with gold, what you buy has been assigned a value in gold by the transaction. When you buy something with paper, you "pay the price" so to speak. Rather than trading something that is inherently valuable, you have traded something that that only costs 4 cents per bill for goods. Although the price is set as such, the value you are exchanging for those goods is easily influenced by the government. The paper you trade only has a value of 4 cents per bill, regardless of the denomination. Rather than trading something that is inherently valuable, you are trading based on the honor of the government, literally credit.

Gold is inherently valuable because one ounce of gold costs as much as one ounce of gold. Fiat dollars are not valuable because one bill (whether a one or a hundred) costs four cents. Other mediums of exchange tend to be less inherently valuable than gold because they can be produced fairly easily (paper, beads, round stones, etc.), or they are more vulnerable to destruction (silver oxidizes more readily, and is used up by industry).

All of this is predicated on the existence of human society.
 
I'm done with this thread. It's amazing how stubborn some of you are when you're clearly wrong.

Throw out your ego and take this as a chance to learn. Otherwise you will go around looking like a fool and taking away credibility from a economic philosophy that you are trying to represent.
 
I'm done with this thread. It's amazing how stubborn some of you are when you're clearly wrong.

Throw out your ego and take this as a chance to learn. Otherwise you will go around looking like a fool and taking away credibility from a economic philosophy that you are trying to represent.

Ok, go cry in a corner then, fussybritches.

I've been on the minority side of lots of arguments, and in MUCH worse threads than this. Grow a pair.

Also, nobody outside of this circle but a high level economist is really going to understand these arguments. It doesn't affect anyone's credibility one way or the other. To argue that those arguing against you are harming the movement by arguing with you is just plain cowardice. I know, I've been on that side too, though I was eventually convinced that the other side was right and I was wrong (this was on the issue of road privatization, which I was against, back during the campaign).
 
I'm done with this thread. It's amazing how stubborn some of you are when you're clearly wrong.

Throw out your ego and take this as a chance to learn. Otherwise you will go around looking like a fool and taking away credibility from a economic philosophy that you are trying to represent.

And you display the ego and stubbornness yourself

Everything you write displays an arrogance of a stubborn man.

Making an argument out of nothing, and demanding only you can define a word, and nothing exists without your imput.
Talk about ego, you take a simple subject like this and make it about yourself.
Hypocrites condemn others for what they give themselves freedom to do
 
I understand exactly what it means. What do you think I am misunderstanding?

In the text you quoted I referred to the "intrinsic value theory", which has a different meaning than the word "Intrinsic" by itself.

Once again, I am not talking about theory, I am talking about the definition of a word.

Gold has intrinsic value by the definition of the word INTRINSIC.

"Inherent, belonging to the essential nature of something."

Its very nature has inherent value, period
 
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