Gold Standard Movement Growing

[grumbler]

The question was about why gold had historically been used as a currency.

Dragons.

Dragons explain why gold is rare, not why it is used as a currency.

[Razgovory]

I think the pain is relative to fiat currencies. Compared electronic credits and paper currency, gold is inconvenient.

I expect it's only compared to other commodity backed currencies that gold shines, so to speak.

Yes, of course.  Gold is too rare to serve as an actual currency.  The question was about why gold had historically been used as a currency.  It has long since been replaced by fiat currencies, but was not itself a fiat currency (which was the issue I was addressing).

Probably, because it was already valuable prior to the invention of money.  It was rare and used in jewelry and ceremonial object giving it value, but wasn't used for practical things like plowshares or swords.  It could be worked fairly easily as well (as opposed to say, Lapis lazuli which can't be melted down)  Making it a coin just standardized the trading of ingots.  Same thing with with silver.  As a coin you didn't have to argue about weight and purity since this was standardized and it's value was promised by the government.

[Slargos]

I think Ide's point is correct and revolves around the ability of anything to be a store fo value. The supply of gold is limited, but the demand is largely driven by the convention that gold is a store of value. That convention could erode to the point the price of gold collapses.

I disagree.  Gold has been used as a reserve of value since long before there were fiat currencies.  The introduction of fiat paper currencies was necessary to economic growth, because there simply wasn't enough gold (and silver) to serve the currency needs of early modern societies. 

If you take a pig to market and want to trade it for wheat, but nobody has wheat that day, it is better to go home with a pig's worth of gold and silver than a pig's worth of beats or even a pig's worth of pig - though not as good as a pig's worth of greenbacks.

Unless of course you happen to be unlucky enough that a Jew has created a pig and wheat brokerage and backed by armed thugs takes half the value of every transaction, leaving you with only a quarter-pig's worth of wheat once you've finished trading.

[jimmy olsen]

WTF is wrong with you?

[Slargos]

I ask myself that question every day. 

[Razgovory]

WTF is wrong with you?

He's boring, that's what.  I'm not sure where he got the idea of a European who hates Jews would be unique, but seems to be under that impression.

[Slargos]

WTF is wrong with you?

He's boring, that's what.  I'm not sure where he got the idea of a European who hates Jews would be unique, but seems to be under that impression.

My offer of free beer is rescinded. GOOD DAY, Sir.

[Besides, I don't hate all jews, just some of them]

[Razgovory]

I do not drink.

[Slargos]

Well you probably should.

[grumbler]

WTF is wrong with you?

TSS - tired schtick syndrome.  His schtick really belongs in the hospital bed next to Neil's.

[CountDeMoney]

I'm not sure where he got the idea of a European who hates Jews would be unique, but seems to be under that impression.

  Wondertwin powers activate! Form of...a stereotype!

[Eddie Teach]

WTF is wrong with you?

TSS - tired schtick syndrome.  His schtick really belongs in the hospital bed next to Neil's.

I think we should make it a policy that posters must reinvent themselves every couple years.

[The Brain]

WTF is wrong with you?

TSS - tired schtick syndrome.  His schtick really belongs in the hospital bed next to Neil's.

I think we should make it a policy that posters must reinvent themselves every couple years.

no

[Razgovory]

WTF is wrong with you?

TSS - tired schtick syndrome.  His schtick really belongs in the hospital bed next to Neil's.

I don't recall him having it very long, it's just not very good. 

[alfred russel]

I think Ide's point is correct and revolves around the ability of anything to be a store fo value. The supply of gold is limited, but the demand is largely driven by the convention that gold is a store of value. That convention could erode to the point the price of gold collapses.

I disagree.  Gold has been used as a reserve of value since long before there were fiat currencies.  The introduction of fiat paper currencies was necessary to economic growth, because there simply wasn't enough gold (and silver) to serve the currency needs of early modern societies. 

If you take a pig to market and want to trade it for wheat, but nobody has wheat that day, it is better to go home with a pig's worth of gold and silver than a pig's worth of beats or even a pig's worth of pig - though not as good as a pig's worth of greenbacks.

I'm not sure you understood the point I was trying to make--your argument doesn't relate to what I was saying.