Quote from: Ibian on December 16, 2013, 02:28:35 AM

Quote from: porc on December 16, 2013, 02:20:37 AM

Quote from: Erdogan on December 16, 2013, 02:12:51 AM

Quote from: porc on December 16, 2013, 02:07:25 AM

Quote from: Erdogan on December 16, 2013, 02:04:32 AM

Here we go again. The subject was well dissected and argued for, now we are back to square one. Anyway...

The intrinsic value of gold, which is the same as its value for direct use, we all agree on. But what is the intrinsic value? Nobody knows, gold has been money for thousands of years, so it is impossible to say. Gold is now at about 1200 USD per ounce. Could the intrinsic value be 100 USD? 1 USD? Can it be used to build aircrafts? No, too heavy. Can it be used to build ships or support the cement in buildings? No, to soft. Can it be used as an offer anode on a ship? No, too hostile to the ions, don't want to connect. It has some uses, but we do not know the value for direct use.

You are being willfully ignorant. Gold has been desired for thousands of years because it looks beautiful.

Not ignorant. That is just another trait that is a part of its use value. I did not mention electrical uses, and the fact that you can drum it out to a sheet the thickness of a single atom. I am sure there are hundreds of uses. Still, nobody knows what the use value is. It will be revealed when its exchange value disappears. With the culture surrounding gold, probably never.

Point taken.

However, you have to understand that golds money value is entirely dependent on golds beauty.

Someone linked an article the other day. The reason gold was used as money for a long time is that there are like five elements that have the proper properties for a medium of exchange. Gold just happens to be the most distinctive looking of the bunch. It was a practical consideration in ancient times, nothing more.

Five elements? No, anything can be money, it is always the most sellable good on the market. In the end, that came to be gold. You can speculate why, and that has been done, but eventually it was the actors on the market who decided.