I do accept gold’s historic position as a hedge to inflation, but I do not believe that gold has an intrinsic value that approaches its financial value. Therefore, in a crisis it has no real value.
I agree. Gold has properties that make it a good conductor and some other industrial applications. It also makes nice looking jewelry that doesn’t corrode. Platinum does the same.
However, neither metal, in and of itself, has any distinguishing property to make it more valuable than any other item of similar characteristics. Its value is based solely on people’s desire to posses it.
Money is a medium of exchange that represents work. Whether its wampum, seashells, gold, or US dollars, the only value it has is that people agree to use it in exchange for work.
While the US dollar and economy are under very serious pressures, there is no reason to chicken little the situation and demand gold be the silver bullet </very bad pun>.
Remain calm, demand a significant decrease in government spending, and keep working. Spend and save prudently.
“Therefore, in a crisis it (gold) has no real value.”
what does have values in a crisis? Once you have food, shelter, bullets, etc. I assume you want to preserve your wealth. Are you happier with a bunch of paper with dead presidents on it? or a metal that has preserved wealth for thousands of years?