In this case, technology has changed the value of gold and silver to that of any another mineral commodity whose value varies with market demand. In fact, without the demand for gold as a raw material for manufacturing electronics it would look even worse as a store of value than it already does.
That's irrelevant? The point is what stands behind the so-called dollar. Anything can serve as the backing as long as it has value. Nonetheless, gold is best, by far, for the reasons stated below, among others.
In fact, without the demand for gold as a raw material...it would look even worse as a store of value than it already does.
There is currently 50 years supply of gold above ground (mostly in the form of unused gold bars). Therefore, the demand for gold, is hardly affected by demand for current industrial usage. About 30% of all the gold that has ever been mined, exists in the form of bars sitting in vaults. What other commodity has even a one year supply in existence.
How do you explain this:
Customer: I'd like to buy an ounce of gold. How much will that be?
Merchant: That will be $275
Customer: I'm sorry, did I say an ounce? I meant a ton. How much will that cost me?
Merchant: $275/ounce.
Name another product for which that is true (besides money)