[truthfreedom]

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.

[arthurus]

It would not "effect" the price of gold. It would affect it but I don't think that particular effect if is going to happen outside of the minds of those oh so very rational people who hold that gold has no real value because you can't eat it, it won't keep the rain off you and it won't keep you warm. Actually, ALL value is psychological, depending on the value that informs people's choices for how to make use of their resources. Some of the things that have value are perishable thus their value is ephemeral and they are not a useful store of value. Other things, such as land, are entirely too bulky to use as any sort of medium of exchange. Some desirable things vary greatly in their occurrence and are not a stable store of value. Gold is mined at fairly steady rates and is highly unlikely to suddenly increase in amount or decrease, either. Gold is unique. It is beautiful and will be regarded as such so long as humans have any appreciation for adornment or art. Gold does not rot, rust, or otherwise waste away. Gold is portable. You can carry around a substantial sưm of value on your person without immobilizing both hands. Gold is a permanent and consistent valuable asset that will not become useless as a store of value and/or medium of exchange so long as humans are free to make choices for themselves. In a perfect totalitarian state there would be no use for gold. In a human totalitarian state gold will still be the supreme store of value. The opulent ruling class will always crave it for decoration and it will always be less than water-common.

[arthurus]

One could argue that gold is valuable because people like it, rather than people like it because it’s valuable.

And that is precisely why gold is , always has been, and always will be valuable.

[NTHockey]

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.

http://www.youtube.com/watch?v=dvmvu6GxqSg&feature=related
Part 3/3

[Atlas Sneezed]

Throughout recorded history, people liked to wear the pretty, rare, yellow metal.

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To put it more bluntly, throughout history, one has had little trouble finding a beautiful woman who will admit a man bearing gold to her inner sanctum.

[Atlas Sneezed]

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.

---

There’s much more to gold than “pretty.”

Jim Sinclair writes:
Good money must have a number of unique characteristics.

(1) It must be durable, which is why we don’t use wheat or corn.

(2) It must be divisible, which is why we don’t use a Picasso painting or jade statues.

(3) It must be convenient, which is why we don’t use lead or copper or real estate.

(4) It must have value in itself, which is why we don’t 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 Cleopatra’s 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.