Nope...that's all you get.
Why Gold has to go down...
- Thread starter PohPoh
- Start date
OKI-DOKI, you're no Sherlock then...Quote from Dr. Zhivodka:
Nope...that's all you get.
My sarcasm seems to have been lost on you also, but that's fine too.
Hello,
What are the reasons gold would have for going up/down. Is there any country still on a gold standard, or is gold industrialized as a material in any way? Where does its primary value come from? Previously in human history it was obviously money but currently where does gold's value come from aside from jewelery and speculation?
I hear people say they buy gold to hedge against inflation and/or they buy gold as a safe haven, but why is it either of these now? In other words where does its intrinsic value come from?
What are the reasons gold would have for going up/down. Is there any country still on a gold standard, or is gold industrialized as a material in any way? Where does its primary value come from? Previously in human history it was obviously money but currently where does gold's value come from aside from jewelery and speculation?
I hear people say they buy gold to hedge against inflation and/or they buy gold as a safe haven, but why is it either of these now? In other words where does its intrinsic value come from?
The short answer is - scarcity. A finite, relatively hard to obtain natural resource would be a decent candidate to be a symbol of exclusivity and wealth, plus it's shiny and pretty (to some, anyway). So people picked gold. Some cultures actually preferred seashells or other crap like that.
Nowadays it's mostly a speculation vehicle as the actual commodity carries very little practical use, IMHO. Silver is much cheaper and actually a far better choice, as far as its thermal and electrical conductivity properties are concerned.
They have multiple industrial & modern uses, ever look inside your computer?
Precious metals are scarce, durable & malleable. The fact that they are pretty makes them popular for jewelry. The fact that they are highly durable, yet malleable made them a good choice for currency & store of value, as well as a primary choice for certain industrial uses.
People always value pretty things, like jewelry, hence the precious metals which compose those would naturally be valued as well.