Ive never been able to understand the concept of gold. Why is it so valuable? How do countries know that the amount of gold being held by other countries? Who audits these gold reserves to make sure the gold isn’t fake? In the event of a major war would you trade food for gold? feel like people would trade goods for different goods in such a dramatic event. I have potatoes and trade them for fruit type stuff. Is gold the same scam as diamonds? Or how is gold any different than Bitcoin?
In: Economics
To understand the rarity of gold, there has only been approximately 244,000 metric tons of gold mined in human history. Compare this to approximately 3,000,000,000 tons of iron ore that is mined **each year**. Add to that it’s usefulness, workability, and other features and it is easy to see why gold has been valuable for a long time.
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