Gold - Speculative or Intrinsic in Value?

[Bossobass]

Does gold have intrinsic value? I don't know, but I do know that if it doesn't, it can buy anything that does.

Ask the worlds Central Banks...

Of course, Bernanke says the gold is only there because it has 'traditional' value.

Bosso

 

[-C-]

Easy

Gold, or anything used as currency, or currency in itself, is not intrinsic in value. The only intrinsic value is the productivity.

 

[enoch150]

With gold, people are using it as a store-of-value...which means it doesn't have its natural brake against speculative run-ups...and is highly susceptible to being over-priced and eventually crashing.

People are using gold as a store of value relative to the dollar. Value is always relative to something else.

Anything not denominated in dollars and with a relatively stable supply and demand can be used as a store of value relative to the dollar. Gold is often used for reasons already mentioned. As long as there is an expectation of a sharply devalued dollar, gold will continue to be used as a store of value relative to dollars. Or some other commodity will, if gold runs up to fast relative to other commodities. It is only when the expectation of a devalued (or worthless) dollar disappears that most non industrial demand for gold will vanish.

 

[Acala]

1. All value is subjective.

2. Gold has no objective value.

3. BUT, and this is crucial, that which is subjectively valued in a gold coin is INTRINSIC to the gold coin - its gold content. In contrast, that which is subjectively valued in a paper dollar is NOT intrinsic to the paper dollar. It is, rather, symbolic - contained in the symbols engraved on the surface.

4. The invention of money, which allowed massive division of labor and specialization in the economy, was one of the greatest inventions in human history. To trivialize gold's utilility is to ignore entirely that gold has, throughout history, been the world's choice for one of the MOST important uses to which any material can be put - money. And gold has been chosen for the critically important use as as money for some very specific reasons.

5. The only reason people stopped using gold as money was because they were forced at gunpoint.