Why gold?

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I occasionally come upon encouragements from 'preppers' to 'buy gold!'. And there's the (seemingly) more mainstream idea that leaving the gold standard was a bad move.

I struggle to understand what is particularly special about gold as a currency other than common human agreement that it's valuable and purdy-shiney. As I understand it, the same thing essentially props up any unit of currency - common human agreement as to what it means and is worth.

Gold is certainly rarer than a fiat currency and, eventually, finite, which would help prop its 'value' up, but for that to be effective there has to be an agreement that it is of value in the first place. Are there not other things that could have common-agreement value? I mean, my body hair, though plentiful, is rare and, eventually, finite. But apparently it's not recognised as any sort of currency.

Am I missing something?

^ Not sure what you're asking, but gold in any form will always be valuable to some extend. Paper money is only a promissory note and if the system collapses won't be worth the paper it's printed on.

From a "prepper" standpoint, other things could easily be used in lieu of currency if our monetary system (and everything with it) collapses.
- Food with a long shelf life
- Batteries
- Flashlights
- Bottled gas for gas stoves, heaters, lanterns.
- Candles
- Guns and ammunition
- Water purification supplies
- First aid supplies
- Radios
etc.

Any high demand survival item can be used as currency.
IMHO, gold is more of a long term investment.

I know what you mean. And it is the same as country boundaries.. They're merely human concepts of lines drawn in the sand.

Like the lines though, it has a historical acceptance as well as a worldwide one. Other currencies we use are similar..just random metals or paper/linen/etc. with ink splotches on top. But gold in this case, being a world currency doesn't turn into worthless when one country crashes - the way that country's currency does.

So yeah, it is just shiny and lala..and if many years ago the powers that be decided it was some other thing that appeared to exist in limited quantities, it would be that instead. Or, if different powers that were did the colonization and wrote history..it again wouldn't be gold.

Not sure if that answers the question..

Gold is hard to fake or counterfeit. Hard to come up with something that heavy that doesn't rust.

Gold has a psychological effect on human beings and is relished and admired in pretty much every culture that has ever encountered it. From the primitive to the advanced. Gold is one of only 2 metals that have color in their metallic form. And gold in particular does not oxidize as readily in air and water the way copper does which is why gold is found in its elemental form. It is NOT the rarest of metals on Earth! Rhodium is much rarer but is just another silver metal. The fact that people are so dazzled by Gold, along with its scarcity compared to other minerals, will always make it valuable even though its price fluctuates. That's the great thing about natural resources and minerals: As long as there is a use for something that is not overly abundant and/or people find it beautiful, there will be a demand for it and you don't have to try to create one with marketing.

But gold isn't just a reserve asset and a jewelry making material! It also is exceedingly useful in modern electronics. Gold has electrical conductivity second only to copper(and Silver I think) and its oxidation resistance makes it perfect for corrosion resistant electrical contacts. It also is very useful in low voltage devices and digital electronic circuits. This adds to the demand for it.

Gold is supposed to hold its value long term, but obviously fluctuates.

It also can exist a very long time without rust or barely any tarnish (very thin).

It is impractical as a currency guarantee though.

come what may, people will continue to value it, at least until somebody invents a process to make it.

I understand. There's a lot of fools banking on gold, and I'm just sat here with my room full of bottle caps, waiting for the nukes to fall.

can you tell me what the bottle caps are for? anyways, I hope if the balloon goes up, that it is mercifully quick and painless.

It's a reference to Fallout.

^^^ oh. thanx

Brass can be used as counterfeit gold.

Brass has only half the density of gold--it takes a lot of brass to substitute for lead when balancing a flying model airplane. While I have enough experience with brass to tell the difference with simple inspection, I'd prove it by measuring its weight on a scale and its volume using water displacement.

I think it is more a lot of fools that are banking on the paper gold market, since there are more claims to gold then there are gold in the vaults. So when it comes down to it a lot of people will a pile of old paper (if even that) for what it is worth and not the gold they thought they had. So if you buy gold/silver it is probably best to buy something you can hold in your hands and not something that is claimed to be in some vault.

http://www.zerohedge.com/news/2015-11-0 ... gold-hits-

It is astonishing how gold has such a profound psychological effect on human beings which is ultimately the source of its intrinsic value. Peoples lustful obsession and infatuation with gold is hardly rational, but investors can exploit it because they understand people WANT it.

my time in the military showed me that brass will tarnish if you so much as look at it wrong.