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
There’s not a lot of gold on Earth. So finding it is special. Gold has a shinny and attractive color that people like to wear as jewelery. Unlike other metals, gold doesn’t rust because its not craving to give away or gain electrons in order to be stable. It’s also hefty but maleable. Gold’s melting point is low, requiring the amount of energy that even non technological civilisations can afford.
Finally, gold is an excellent electric conductor while an excellent thermal conductor as well. Gold has been used for trade for centuries. So people are used to consider this element as something special.
Edit: sorry, wrote insulator instead of conductor in a hurry. My bad.
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