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Originally posted by ajh91
If so how could the USD crash if all the other major currencies are worth just the same. Nothing!!!
originally posted by abritraryguy
If your USD cash is worth nothing, you could give it to me .
Seriously, what's the inherent value of gold? It's just a inherently useless (i.e., no use vale), shiny, tarnish-proof rock to which people have happened to attach psychological value. Same with dollars, yen, pounds, or Euros... they're inherently useless (i.e., no use value), colorful, water-proof pieces of paper to which people attach psychological value. In (mainstream) economics, psychological tastes and preferences are the basis for all values/prices.
Originally posted by ArbitraryGuy
Originally posted by ajh91
If so how could the USD crash if all the other major currencies are worth just the same. Nothing!!!
If your USD cash is worth nothing, you could give it to me .
Seriously, what's the inherent value of gold? It's just a inherently useless (i.e., no use vale), shiny, tarnish-proof rock to which people have happened to attach psychological value. Same with dollars, yen, pounds, or Euros... they're inherently useless (i.e., no use value), colorful, water-proof pieces of paper to which people attach psychological value. In (mainstream) economics, psychological tastes and preferences are the basis for all values/prices.
Originally posted by Stratrf_Rus
Gold has real value because it takes real effort to extract from the earth.
It takes almost no effort to print billions of dollars, but to extract billions of dollars worth of Gold takes considerable effort and thus it is given real value by real human effort.
- Gold can be made into thread and used in embroidery.
- Gold performs critical functions in computers, communications equipment, spacecraft, jet aircraft engines, and a host of other products.
- The resistance to oxidation of gold has led to its widespread use as thin layers electroplated on the surface of electrical connectors to ensure a good connection. - Gold is used in restorative dentistry especially in tooth restorations such as crowns and permanent bridges as its slight malleablity makes a superior molar mating surface to other teeth, unlike a harder ceramic crown.
- Use of gold crowns in more prominent teeth such as incisors is favored in some cultures and discouraged in others.
- Colloidal gold (a gold nanoparticle) is an intensely colored solution that is currently studied in many labs for medical, biological and other applications.
- It is also the form used as gold paint on ceramics prior to firing.
- Chlorauric acid is used in photography for toning the silver image.
- Gold(III) chloride is used as a catalyst in organic chemistry. It is also the usual starting point for making other gold compounds.
- Gold is used as a coating enabling biological material to be viewed under a scanning electron microscope.
- Many competitions and honors, such as the Olympics and the Nobel Prize, award a gold medal to the winner (with silver to the second-place finisher, and bronze to the third.)
- Since it is a good reflector of both infrared and visible light, it is used for the protective coatings on many artificial satellites and on astronauts' helmets to prevent blindness from the sun.
- Disodium aurothiomalate is a treatment for rheumatoid arthritis (administered intramuscularly). It inhibits lymphocyte proliferation, lysosomal enzyme release, the release of reactive oxygen species from macrophages, and IL-1 production. However, it can also cause photosensitive rashes, gastrointestinal disturbance, and kidney damage.
- The isotope gold-198, (half-life: 2.7 days) is used in some cancer treatments and for treating other diseases.
- Gold flake is used on and in some gourmet sweets and drinks. Called varak or (varaq) in India. Having no reactivity it adds no taste but is taken as a delicacy. Some use it as an excuse to create super-expensive delicacies ($1,000 cocktails). For similar reasons, it also used as the basis for some superstitious, over the top, health claims. Only the salts and radioisotopes (mentioned above) have any evidence of medicinal value.
- White gold (an alloy of gold with platinum, palladium, nickel, and/or zinc) serves as a substitute for platinum.
- Green gold (a gold/silver alloy) is used in specialized jewelry while gold alloys with copper (reddish color) are more widely used for that purpose (rose gold).
Originally posted by ArbitraryGuy
Originally posted by Stratrf_Rus
Gold has real value because it takes real effort to extract from the earth.
It takes almost no effort to print billions of dollars, but to extract billions of dollars worth of Gold takes considerable effort and thus it is given real value by real human effort.
It takes real value to dig up sand from the bottom of the ocean, but that's not worth the same as gold. It takes real effort to dig up aggregate for cement, but aggregate doesn't have the same value as gold.
The labor theory of value does not apply here. Gold's value is determined psychologically, just as the value of paper money. People psychologically value gold such that they're willing to exchange it for a certain amount of dollars whose value is also psychologically set. This is what sets the price of gold, pure and simple. If people didn't psychologically value gold, it'd be worthless.
Originally posted by Stratrf_Rus
This is not correct.
Originally posted by Stratrf_Rus
Gold as with any commodity's price is set by demand.
Originally posted by Stratrf_Rus
People want and need Gold,
Originally posted by Stratrf_Rus
it costs a lot to extract it (a lot more than aggregate) and so therefore it has REAL value.
Originally posted by Stratrf_Rus
Something a person will accept in payment or use for its self...
Originally posted by Stratrf_Rus
Fiat money has no real value because you can't use it for anything and it doesn't take much to make.
Again, gold has no use value either. If your fiat money has no real value, you can send it over to me.
Originally posted by sardion2000
Again, gold has no use value either. If your fiat money has no real value, you can send it over to me.
Actually, you are grossly incorrect. Gold has many potential uses from Medicine to Electronics. It doesn't tarnish, it's an excellant conductor, and is very malleable. Some have even suggested that gold nanowires may be able to superconduct at a higher then usual temperature. It's a shame that it's wasted on frivolous stuff like jewlerly and backing currency(or provinding a last ditch option in some cases).
Sheesh, learn a lil chemistry please!?!
[edit on 29-8-2006 by sardion2000]