So what's up with gold?

[Grey Fox]

I have a gold coin, Napoleon 1906.

[Martinus]

Not directly related, but it always amuses me how the supporters of gold standard criticise modern money as having no intrinsic value and only being based on a consensus.

As if gold was any different.

[mongers]

Not directly related, but it always amuses me how the supporters of gold standard criticise modern money as having no intrinsic value and only being based on a consensus.

As if gold was any different.

By that standard nothing has an intrinsic value.   

[Martinus]

Not directly related, but it always amuses me how the supporters of gold standard criticise modern money as having no intrinsic value and only being based on a consensus.

As if gold was any different.

By that standard nothing has an intrinsic value.   

Some things, like food or raw materials, though, are closer to real value than precious metals.

And really, you missed my point completely, as I was showing that the gold standard nuts' insistence on gold having intrinsic value (as opposed to paper money) is laughable. I was not advocating returning to barter economy.

[Grey Fox]

Not directly related, but it always amuses me how the supporters of gold standard criticise modern money as having no intrinsic value and only being based on a consensus.

As if gold was any different.

By that standard nothing has an intrinsic value.   

Yes, that's half his point. Picked & agreed upon standard is all that matter, not what the standard is.

[JacobL]

Not directly related, but it always amuses me how the supporters of gold standard criticise modern money as having no intrinsic value and only being based on a consensus.

As if gold was any different.

By that standard nothing has an intrinsic value.   

Some things, like food or raw materials, though, are closer to real value than precious metals.

And really, you missed my point completely, as I was showing that the gold standard nuts' insistence on gold having intrinsic value (as opposed to paper money) is laughable. I was not advocating returning to barter economy.

So...the potato standard? 

[Warspite]

Not directly related, but it always amuses me how the supporters of gold standard criticise modern money as having no intrinsic value and only being based on a consensus.

As if gold was any different.

By that standard nothing has an intrinsic value.   

Yep. Value is a subjective concept, and socially constructed.

[Valmy]

Yep. Value is a subjective concept, and socially constructed.

If that was true we could just socially construct everybody as a millionaire.  I was under the impression value was a result of demand for something and how much of it was around. Now the demand is obviously socially constructed but the value is not subjective unless the supply of it is also subjective.

[Martinus]

Yep. Value is a subjective concept, and socially constructed.

If that was true we could just socially construct everybody as a millionaire.  I was under the impression value was a result of demand for something and how much of it was around. Now the demand is obviously socially constructed but the value is not subjective unless the supply of it is also subjective.

Err, I would say it's exactly the opposite. Demand is natural since people need to eat

[Valmy]

Some things, like food or raw materials, though, are closer to real value than precious metals.

And really, you missed my point completely, as I was showing that the gold standard nuts' insistence on gold having intrinsic value (as opposed to paper money) is laughable. I was not advocating returning to barter economy.

THat is not what they claim.  If they did that would indeed be laughable.  Gold is a commodity so it has a price and they want money (also a commodity) based on this price.  They want this because they view paper money and fiat money as a dangerous because of the arbitrary power governments have over it, governments cannot as easily control the amount of gold laying around.  Historically paper money was a loser but perhaps we are more sophisticated now, watching central banks buying up bonds maybe not...or maybe that is the exact right thing to do.  I do not claim to be some sort of monetary expert but I have certainly never heard anybody say that gold, or anything else, has value separate from its supply.

[Valmy]

Yep. Value is a subjective concept, and socially constructed.

If that was true we could just socially construct everybody as a millionaire.  I was under the impression value was a result of demand for something and how much of it was around. Now the demand is obviously socially constructed but the value is not subjective unless the supply of it is also subjective.

Err, I would say it's exactly the opposite. Demand is natural since people need to eat

Hmmm...didn't you just say that demand for gold was based on consensus?

[MadImmortalMan]

It has non-monetary industrial uses too.

[Valmy]

It has non-monetary industrial uses too.

True which would be sorta a chink in the armor for using it as money.  The primary strength of gold was always that it was useless for anything other than money.

[derspiess]

The primary strength of gold was always that it was useless for anything other than money.

Gold is a very strong metal and conducts heat and electricity better than almost anything else.

[Valmy]

The primary strength of gold was always that it was useless for anything other than money.

Gold is a very strong metal and conducts heat and electricity better than almost anything else.

The ability for it to conduct electricity and heat was not really a factor back when the Spanish were shipping it over to pay for their wars in the Netherlands.  You notice I used the past tense there.  But hey enlighten me, maybe I am wrong on that one.