Is gold actually worth anything?

[Naked shorts]

Gold has me confused

Things it can be used for
> Spaceships
> Looking nice
> Anti corrosion

Its heavy and bends easy so why the hell is this stuff so expensive?! It doesn't DO anything! (compared to say...steel, oil, sugar, and every other commodity)

 

[chops_a_must]

It's the only element/ material that is totally indestructible isn't it?

That's why I guess.

 

[Flip]

it looks nice.
its rare.
good for electronic circuits.
people think it has value.

 

[Naked shorts]

It's the only element/ material that is totally indestructible isn't it?

That's why I guess.

It doesn't corrode, and it has decent electrical conductivity (silver has better).

I wouldn't go as far to say its the only indestructible element. Things like diamonds don't self destruct either, plus they would be easier to carry around

 

[integrity]

Are stocks actually worth anything?
Is ABS, BNB, AFG actually worth anything?
Are warrents linked to QLD government projects actually worth anything?
Is the Zimbabwe dollar actually worth anything?
Is that $50 note in your wallet actually worth anything?

Sometimes it just depends on the time frame.

 

[Ageo]

Gold has me confused

Things it can be used for
> Spaceships
> Looking nice
> Anti corrosion

Its heavy and bends easy so why the hell is this stuff so expensive?! It doesn't DO anything! (compared to say...steel, oil, sugar, and every other commodity)

* Its been used as money for a very long time,
* More scarce than silver
* Can be formed into many things and easier to work with
* Doesnt Corrode
* Sparkling look
* People have accepted it to be of some value
* Probably most importantly governments used it as a backing for paper money.

 

[Absolutely]

I been asking myself the same question actually. Like, where is it safe or worthwhile to put your money right now....shares, nup, banks, nup, property, nup.

So what about buying some gold and sticking it under the bed ?

Thing is, if the whole world economy collapses, surely the worth of gold collapses with it. I mean you can't eat gold. Gold doesn't keep you warm or is a good material to create shelter out of. So what good is it really......?????

 

[Naked shorts]

Are stocks actually worth anything?
Is ABS, BNB, AFG actually worth anything?

They are worth something because they have the potential to be worth something. ABS for example could be bailed out (or bought out), and in a year, go back to where they were. Unlikely, but possible

* Its been used as money for a very long time,
* More scarce than silver
* Can be formed into many things and easier to work with
* Doesnt Corrode
* Sparkling look
* People have accepted it to be of some value
* Probably most importantly governments used it as a backing for paper money.

Just because it has been used to represent money, doesn't mean its worth anything.

I have also since learned that it is used in some anti cancer medicines
http://en.wikipedia.org/wiki/Gold

I am still at odds as to why its ridiculously expensive, and why people view it as something to speculate on.

 

[moXJO]

I mean you can't eat gold.

Don't be so sure

http://www.delafee.com/index.php?cPath=48&page=gold&gclid=COTY2tfnhJcCFSJIagodmH0HXg

 

[prawn_86]

I have often wondered the same thing NS, and indeed in the current climate you would have thought gold would be going to new highs if the gold bugs were right and its such a great hedge against everything.

One reason it is worth a lot is there isnt much of it and its hard to dig up.

But if people dont want it, because its not actually good for anything, then it doesnt matter how hard it is to dig up...

 

[Naked shorts]

Thing is, if the whole world economy collapses, surely the worth of gold collapses with it. I mean you can't eat gold. Gold doesn't keep you warm or is a good material to create shelter out of. So what good is it really......?????

Exactly my point, its as if its market value is far beyond its intrinsic value.

If the world crashes, are you really gonna give me your cows, chickens and wheat farms for a handful of pretty metal? NO

 

[explod]

Don't be so sure

http://www.delafee.com/index.php?cPath=48&page=gold&gclid=COTY2tfnhJcCFSJIagodmH0HXg

Wonder if you can stake a claim for the bottom of the turd sump. Anyone want to be in it and help would be appreciated.

 

[GreatPig]

Gold has value as a form of money because of its properties. Most importantly, it can't easily be created, despite alchemists' best attempts over the centuries, and can't be found in relatively large quantities, so is not subject to inflation like paper money. Then there are other useful properties like its inertness (doesn't corrode over time), and its ability to be easily shaped into coins and divided into accurate smaller pieces (unlike diamonds for example).

However, this is all reliant on there being a perceived need for a form of money. The only alternative I can think of is barter, which is highly inconvenient in anything other than small communities. So on the assumption that there is a need for a form of money, gold has most of the desirable properties to fulfil that role. In small closed environments like prisons and POW camps, things like cigarettes have at times fulfilled that role.

If the world devolved into some sort of post-apocalyptic mess, initially other things like food and water for survival would be more valuable, but eventually there'd likely be a need for some form of money again. Who knows what it might be though. If all technology had gone, then old technological gadgets might be useable, again on the basic premise that they'd be in limited supply and not able to be manufactured. Not readily divisible though, so maybe the currency would be something like 1 Playstation = 10 Gameboys = 100 MP3 players, with 10 Playstations being one large plasma or LCD TV, and so on. You'd want big pockets to carry it all around though!

GP

 

[numbercruncher]

Gold has me confused

Things it can be used for
> Spaceships
> Looking nice
> Anti corrosion

Its heavy and bends easy so why the hell is this stuff so expensive?! It doesn't DO anything! (compared to say...steel, oil, sugar, and every other commodity)

It money and has been for thousands of years ...

Central banks cant print it , replicate it or bring it into being through alchemy or any other tricks ..... its timeless ....




Long after people lose faith in their Governments/Central banks created out of thin air money gold will still be their to do its job, a true global currency ..

 

[chops_a_must]

It doesn't corrode, and it has decent electrical conductivity (silver has better).

I wouldn't go as far to say its the only indestructible element. Things like diamonds don't self destruct either, plus they would be easier to carry around

Lol.

Copper, platinum, hell even the Hindenburg don't self destruct either.

You can however turn Diamonds into dust and make them therefore useless. Even in dust form, Gold still has the same value, and is in exactly the same quantity as before.

 

[Ageo]

Just because it has been used to represent money, doesn't mean its worth anything.

Then if thats the case nothing is worth anything besides the commodities we consume? and if thats the case agriculture commodities should be through the roof?

 

[GreatPig]

if thats the case agriculture commodities should be through the roof?

Agricultural commodities can easily be produced, at least at the moment. If you made wheat the currency, people could just go out and grow (or steal) acres of wheat and get rich.

GP

 

[Ageo]

Agricultural commodities can easily be produced, at least at the moment. If you made wheat the currency, people could just go out and grow (or steal) acres of wheat and get rich.

GP

Exactly that is why gold have value because it is scarce, easily transferable and can be used as a means of exchange. To produce gold requires many man hours so unlimited cannot be created (unlike paper).

Something that has value (or real wealth) requires labour to produce it

 

[awg]

apart from the previously mentioned.

it is not so badly affected by inflation/deflation as paper currency.

it still is almost a defacto world currency, there is nothing else so universal.

The large populations of Asia, especially India and China, still use it as a store of wealth, as they have done for thousands of years, in the form of jewellery

 

[sinner]

An excellent question imo!

I think perceived value has a lot to do with it, why does LGL rally if everyone wants their physical?