The Value of Gold

[foodchain]

Is the value of gold mostly "artificial" in a sense?

 

I mean what makes gold so valuable?

[Cap'n Refsmmat]

People are willing to pay a lot to get it.

[AngryTurtle]

because a very long time it was rare and shiny and therefore a symbol of power and its value got translated into money and even when we switched over to fiat money its still valuable out of the sheer fact that it is valuable.

[Cap'n Refsmmat]

It's like Lindsey Lohan being famous just because she's famous.

[bascule]

Gold does have "real" value as an excellent conductor of electricity while also being a "noble metal" which is resistant to corrosion

[AngryTurtle]

theres alot of metals with interesting properties but not too many of them are stamped into bars and stacked in a giant fortress to keep people from touching them (making excellent use of their conductivity.) Not saying you are wrong, but the luster of gold seems to have driven its price up to make it's other features hard to access, ie i haven't cut open many wires to find gold inside.

[Phi for All]

It's all perception. It looks beautiful, it has a hefty weight to it, and I swear it feels warmer than other metals (although that's probably because it's usually worn next to the skin as jewelry).

 

I guess it's like diamonds. There are much rarer gem stones than diamonds but diamonds are priced inconsistently with their comparative rarity. Platinum is 30 times rarer than gold but it's not 30 times more expensive.

[bascule]

Platinum is 30 times rarer than gold but it's not 30 times more expensive.

 

There's also Glenn Beck telling people to buy gold

[Tranquility]

Gold has been used as the basis for global economics for centuries, not so much now admittedly. I think most of its current perceived value is due to its previous importance.

[tomgwyther]

It also has value in that, it's value doesn't change that much. Currencies may rise and fall and in some cases completely collapse. But gold stays relatively consistent, making it a good investment and thus giving it value against currency. One could equally argue, why Fiat money is valued.

Consider this:

Today, an ounce of gold will buy you a reasonable second-hand car (Or its cash equivalent will)

in the 1980s and ounce of gold would by you a second hand car

in the 1950s A second hand car had the cash equivalent of a second hand car

in 15th century an ounce of gold would buy you a decent second hand cart

In Roman times a modest chariot could be purchased with an ounce of gold.

 

Gold technically has no real value though as it cannot be eaten, only traded for food. In some sort of Hollywood style apocalypse, gold would clearly have no value what ever.