The only question to ask about gold

Gold will always be a valuable metal because for one thing it is rare and for another its properties are such that it makes it a perfect material for personal ornamentation.

Personal ornamentation, along with hairdressing and quality and style of clothes, is the method by which we initially judge the social status of a new acquaintance. Social status, apart from eating, sexual activity and our propensity to work and relax in groups, is the most characteristic aspiration humans have.

Aspiration for social status varies in one dimension by means of being strongest in childhood, adolescence and young adulthood and mostly wearing off by the age of about 30 years for most people when the brain is largely fully developed. Aspiration for social status varies in another dimension from the masses through to higher strength and discernment among the higher social classes.

Aspiration for high social status affects all infrequent ambitious individuals whether in artistic, scientific, intellectual, political or business circles. Some want wide public acclaim of their status, others want only for personal reputation among their own kind, however small.

The need for gold, either worn personally for status or as the necessity for currency somewhere among the practice of one’s occupation will thus be maintained as long as man will remain.

The question then is: When the next monetary crash occurs will gold be re-established as the basis for a non-inflatable currency either by:

(a) a rapid coming together of all nations and agreement of a new monetary system  within days;

(b) a rapid gold-backed Chinese yuan as a replacement for a worthless American dollar;

(c) a rapid coming together of multinational corporations to use a gold-backed digital currency in order to keep the world’s trading economy going.

I back the third scenario but you may have your own views — unless you believe that all governments have the world’s economy well in hand and that a worse catastrophe than the 2008 Crash won’t happen.

One thought on “The only question to ask about gold

  1. Gold as a commodity is useful. It is used in industrial applications and for personal use. It is also useful as a means of savings since it has a stable and compact form. Gold as currency was a good idea but now there are better ways of conducting trade (which includes everything from buying a loaf of bread, paying someone for moving the furniture, etc., to international buying and selling of very costly stuff).

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