Saw this video about gold, it’s chemical structure and malleability. I still don’t understand why gold is worth anything at all……
In: 236
Because it’s pretty, and most importantly, corrosion resistant and useless… or, rather, used to be useless until modern electronics hit the scene.
If you’re going to use a commodity-based currency, you want one that people will not use in things like construction or tools, otherwise a lot will be destroyed in circulation just for general utility. Good doesn’t make a good nail or hammer. It’s actually pretty useless. But it is pretty, so you can wear some jewelry and always have backup currency if you lose your purse or something.
African Americans actually started wearing obnoxious gold necklaces and shit to show business owners they have wealth and were less likely to do things like dine and dash. And if they couldn’t afford the bill, the owner could take the necklace and compensate the difference. Plus, wealthy people like showing off their wealth with stupid shit like gold.
It’s shiny, and it stays shiny.
People like shiny things.
They’ll trade you lots of apples and salt and money to have shinies.
It’s valuble because there is a very finite amount of it, and it really doesn’t have many practical uses. Not having very many practical uses means that it’s market value is relatively stable, because it is not being bought & consumed in large quantities. Rather it is hoarded as a means to insure against economic downturns.
This is one reason why it, and other precious metals (copper & silver) were often used in currencies. The idea is that the coin cannot possibly be worth less than the raw material it’s made of, no matter what the currency is backed by. So the coin essentially “backs itself” to a point. And it’s harder to counterfeit coins made purely from precious metals in a way that’s worthwhile.
However, gold’s incredibly stable price is also why it’s *not* really that valuble. Gold is a good way to beat inflation, and insure against an economic collapse, but it isn’t at all valuble as an *investment*. The modern capitalist economy of the world is built on economic growth, gold usually doesn’t get any more or less valuble as time passes by, so having gold doesn’t really make you any more or less wealthy.
Now, if you *find* gold, like a previously undiscovered vein of gold that hasn’t been mined or claimed by somebody, that can make you more wealthy, but most of the world’s gold has already been found & claimed.
It’s valuble because there is a very finite amount of it, and it really doesn’t have many practical uses. Not having very many practical uses means that it’s market value is relatively stable, because it is not being bought & consumed in large quantities. Rather it is hoarded as a means to insure against economic downturns.
This is one reason why it, and other precious metals (copper & silver) were often used in currencies. The idea is that the coin cannot possibly be worth less than the raw material it’s made of, no matter what the currency is backed by. So the coin essentially “backs itself” to a point. And it’s harder to counterfeit coins made purely from precious metals in a way that’s worthwhile.
However, gold’s incredibly stable price is also why it’s *not* really that valuble. Gold is a good way to beat inflation, and insure against an economic collapse, but it isn’t at all valuble as an *investment*. The modern capitalist economy of the world is built on economic growth, gold usually doesn’t get any more or less valuble as time passes by, so having gold doesn’t really make you any more or less wealthy.
Now, if you *find* gold, like a previously undiscovered vein of gold that hasn’t been mined or claimed by somebody, that can make you more wealthy, but most of the world’s gold has already been found & claimed.
It’s shiny, and it stays shiny.
People like shiny things.
They’ll trade you lots of apples and salt and money to have shinies.
It’s valuble because there is a very finite amount of it, and it really doesn’t have many practical uses. Not having very many practical uses means that it’s market value is relatively stable, because it is not being bought & consumed in large quantities. Rather it is hoarded as a means to insure against economic downturns.
This is one reason why it, and other precious metals (copper & silver) were often used in currencies. The idea is that the coin cannot possibly be worth less than the raw material it’s made of, no matter what the currency is backed by. So the coin essentially “backs itself” to a point. And it’s harder to counterfeit coins made purely from precious metals in a way that’s worthwhile.
However, gold’s incredibly stable price is also why it’s *not* really that valuble. Gold is a good way to beat inflation, and insure against an economic collapse, but it isn’t at all valuble as an *investment*. The modern capitalist economy of the world is built on economic growth, gold usually doesn’t get any more or less valuble as time passes by, so having gold doesn’t really make you any more or less wealthy.
Now, if you *find* gold, like a previously undiscovered vein of gold that hasn’t been mined or claimed by somebody, that can make you more wealthy, but most of the world’s gold has already been found & claimed.
Because it’s shiny and pretty and we’re basically naked crows that want the shiny and the pretty
Because it’s shiny and pretty and we’re basically naked crows that want the shiny and the pretty
Because it’s shiny and pretty and we’re basically naked crows that want the shiny and the pretty
For multiple reasons:
Scarcity
It’s beautiful
It’s used to manufacture tons of things
It was easy to turn into coins and jewelry because it’s soft
Latest Answers