Eli5: Why is gold considered to be inherently valuable?

Question

I hear some economics arguing that currency should be pegged to gold as a way of ensuring that its value isn’t arbitrary / volatile but I don’t understand how this would solve the problem. I understand that gold is a scarce resource that is difficult to mine but is it this alone that gives it intrinsic value ?

In: 115

Answer 1

No serious economist would suggest pegging the dollar to gold. That has always led to disastrous currency crashes. Dumping the gold standard was the best thing the world economy has ever done.