One could argue that gold is valuable because people like it, rather than people like it because it’s valuable.
Throughout recorded history, people liked to wear the pretty, rare, yellow metal.
The psychology involved is the psychology involved with making jewelry out of it. If people didn’t find gold pretty anymore, that would effect the price of gold.
And that is precisely why gold is , always has been, and always will be valuable.
The human mind is fascinated with anything bright - gold, silver copper; therefore, the metals will keep their value.
If we ever advance beyond our prehistoric predilection for shiny things, that will change.
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Throughout recorded history, people liked to wear the pretty, rare, yellow metal.
Throughout recorded history, people liked to wear the pretty, rare, yellow metal. The psychology involved is the psychology involved with making jewelry out of it. If people didnt find gold pretty anymore, that would effect the price of gold.
Jim Sinclair writes:
Good money must have a number of unique characteristics.
(1) It must be durable, which is why we dont use wheat or corn.
(2) It must be divisible, which is why we dont use a Picasso painting or jade statues.
(3) It must be convenient, which is why we dont use lead or copper or real estate.
(4) It must have value in itself, which is why we dont use paper.
(5) It must be transportable, which means that large values must be contained in a small area (a gold coin weighing only one ounce can be worth far more than fifteen hundred dollars).
(6) It must have a long history of being accepted as a store of value. Gold was considered valuable as long as 5,000 years ago in the age of the Egyptians.
(7) It cannot “disappear” or be used up in manufacturing as is copper and even silver. Thus, the gold coin that you have in your hand may have been part of Cleopatras earrings centuries ago. Almost all the gold that has ever been discovered is still available in one form or another.
(8) It must not be the liability of any sovereign nation, nor should it require governmental law to make it money. For instance Gold requires capital, talent, risk, sweat and courage to recover or to accumulate.