Originally Posted by Tombstone RJ
My point is simple: Gold is a commodity that people value and they value it highly. Fine. However, if the economy tanked and people had to survive on lets say the "barter" system, then gold, aside from being pretty to look at is really not all that practicle. Are you gonna make tools out of gold? Are you going to plow a field with a gold tractor? Are you going to make bullets out of gold? Are you going to build a dam out of gold? Are you going to feed your family on a bar of gold? Are you going to pump water out of the ground with a gold windmill? Are you going to build a boat out of gold? Are you going to fish with a gold net?
It's value is based on perception more than practical applications. The fact that it is rare increases it's value substantially.
Yes, you can use gold for industrial purposes, but it's cost is so extreme, that it's impracticle for things like wiring and alloys. No one is gonna invest in gold wiring when copper wiring is fine if not better. Oh and btw, nobody can afford copper wiring either.
Gold, why valuable is a luxury item, not a practicle item
Tell me what value does a dollar bill have except for the value people agree to, well it's the same with one ounce gold coins and in it event of complete financial collapse gold will become the new money.
Say you have a horse to trade and you want solar panels but the guy that has the solar panels doesn't want a horse what do you do? You both agree gold has a value that everyone agrees on so you 'buy' the panels with your gold coin (s).