why does gold have so much value now that it’s not propping any currencies?
In: Economics
Gold has intrinsic value because it’s shiny and hard to get.
Why is its value going up? Because of the ratio of gold to other stuff to trade for gold. Back in gold rush Alaska there was lots of gold, but not so much building supplies, so you’d trade a nugget for nails. Now there’s not much gold and tons of building supplies so your nugget would get you truckloads of nails.
Kind of the same with currency. Now that they make currency out of thin air, the ratio of gold to $ is always shrinking.
So, why does it have any value? Shiny, rare
Why so much compared to other stuff? Ratios
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