It is a rare and beautiful metal (since there isn’t very much of it [the supply is relatively low] they can charge a high price for it [as long as the demand is there]). The laws of supply and demand make something loose or gain value—it’s all about asking price, and whether or not people are going to be willing to part with their hard earned money. It is also very maleable so that makes it easy for artists to craft things with it. I think fake gold (as long as it looks just as beautiful) should be worth as much, because we waste too much energy on using this somewhat useless (other than aesthetically) metal as a currency — people can steal it too — and people literally die because we are greedy gold mongers it seems. Why not just say, “If it is pretty (or USEFUL), then it is worth a lot.”?
To a certain extent, fiat. The same with money, really–there’s nothing intrinsic about chemically-treated paper that makes it valuable, only that we’ve agreed to use it as a means of exchange for commodities with a more perceptible value, like food, clothing, etc. (In economics we say currency like money and gold has “exchange value” rather than “use value”). That said, there are a number of properties of gold that make it attractive as a means of exchange. For example, gold is very rare–all the gold in the world could fit on a basketball court. Also, gold is imperishable. It does not rust, degrade, melt, or break easily.
Click here to cancel reply.
Sorry,At this time user registration is disabled. We will open registration soon!
Don't have an account? Click Here to Signup
© Copyright GreenAnswers.com LLC