Originally Posted by Tombstone RJ
If the guy needs the gold to make the solar panels then yes, I see your point. However, if that is not the case, then the gold is of no use to either of us. If he does not want my horse, then we barter for something else.
I probably would not have the time nor the energy to hall a bunch of gold around anyway.
The question is, do you need gold to live?
What you are missing is there is and always has been an agreed on value of gold which means you 'pay' the guy in gold the value of the solar panels and the seller has a convenient instrument of value to exchange for what ever he might need, say seeds for example. The seller of the seeds uses the gold he received to buy, lets say a horse and uses the gold for the purchase. All gold serves is a transfer conveniently goods and services for one person to another exactly as currency is used to day but because there is only so much gold it can't be devalued by creating more gold out of thin air like the fed is now doing with the creation of trillions of dollars.