Quote:
Originally Posted by SmokeyTheBear
gold has an inherent value because it is usefull. Money has no inherent value other than as paper.
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Gold is solid value storing container so to say, proven historically therefor you have this inherent value attached to it. Faith in gold is backed historically and that is true. But faith is not constant.
IF something comes that is cheaper to store, transit and utilize than gold as a value container and more secure, faith and therefore price of gold will go down. In that case it will still have utility in other industries but not in financial sector - wouldn't you agree?
In the past rocks were used as money, now bank vaults don't store rocks. Why? something more efficient like gold has replaced rocks, same thing can and will happen to gold. you can't send 1 oz of gold in payment through fiber-optic channels without added huge costs and delays in time to get from point A to point B.