Quote from: shmadz on June 04, 2014, 05:08:36 AM

humans will always love gold, it's a very cool metal. but it's use as a currency is limited. store of value? probably, for a while, but there's just so damn much of it.

The majority of people hold the mistaken notion that gold is valuable because it is scarce. In fact, the complete opposite is true:

Gold is valuable because it is the element that has the highest stocks:flows ratio (basically: it is the most plentiful)

Because gold is so abundant already, making more gold is very difficult and does not materially change the balance of the existing stocks (only about 1.2% per year). This guaranteed low inflation is what makes gold a savings medium.