[quote=patb]
Gold has zero dividends, it’s just a commodity like
cement, steel or wood.
Gold has a certain amount of convenience, but that’s it[/quote]
Gold has absolutely no convenience. Holding dollars is way more convenient. If I could convert the dollars in my bank account into gold by clicking a button then your convenience argument might hold some water.
Have you tried to buy physical gold? If you try to convert your dollars into gold coins, you will end up paying some premium for getting the gold in coin form. How should you value that ‘coin’ premium?
Have you ever tried to buy something using gold? Can you go into a bank in the U.S. and buy gold like you can in China? How can you be sure that your gold isn’t fake? Have you asked your employer to pay you in gold? If so, what did they say?
Any way you look at it, the U.S. dollar is way more convenient than gold. The U.S. government wants it that way.
