All money today is “fiat money” since it’s all paper and no third party (the issuer) will give you a set amount of anything for it, except different denominations of fiat money, (change).
Gold is not fiat money. It’s not something that’s issued by a government that forces people to accept it.
Your argument has too many undefined terms. I’m guessing what you mean by “psychological value” is whatever value beyond a thing’s use as a necessity. There’s a great deal of psychological value in art, but not much “floor value” or intrinsic value.
The “trading value” is the value of the commodity which is just its price on the open market. That’s the value. As long as there is a market for a commodity, there will be a given price or “trading value” set for it on a daily, hourly or minute-by-minute basis.
Yes, it’s confusing. In the absence of a market for something, how do you determine its value?
I don’t want to discuss the value of something without reference to a market for it. That’s not the context here.
