[quote=SpringSessionM]Why does gold have intrinsic value? Because it is shinny? Think about this for a minute. It is valuable because people THINK it is valuable. How is this any different than a house, a stock, or even “fiat” currency? In more primitive days there was no paper for fiat currency, stocks or bonds, but even ignorant cavemen could be fascinated by shinny objects.
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If you believe gold has value only because people THINK it is valuable, ask yourself this question. How do you preserve the fruit of your labor when your government is determined to devalue its currency. Do you buy oil? How do you store it? Do you buy food? What if they perish? Do you buy land? Is it liquid? Gold is valuable not because people THINK it is valuable, because it has all the right attributes as a medium of exchange and as a store of value. It is liquid, non-perishable, and can be easily divided and stored. It is for these reasons that gold has withheld the test of times.
Of course if you believe Armageddon, then all bets are off.
