Jacob,
RE: "Gold has symbolic value, and scarcity value, and nothing else."
That is one more value than the dollar, which certainly has no scarcity value. I don't want to get into a goldbug rant, commodities vs fiat currency etc, as I am not a true goldbug, just a trader who likes to track and trade gold stocks. I just want to note that the value of a thing used as money, whether the US dollar or gold or wampum, rests on sentiment. Actually it is a type of faith, in that when folks go shopping they do not consider if their money is worthy to be used for an exchange for goods, they simply want to know how many of them are needed to culminate their purchase. I find it curious that people put so much effort into accumulating dollars, without much understanding of the mechanics of their value.
Indeed, I have put many a citizen into a state of stupor attempting to discourse with them on the nature of money.
Yet, had I dropped a Twenty from my pocket while I walked away, they would have pounced on it with a clarity of mind and purpose. Under the same circumstances were I to drop a Gold Eagle, many folks wouldn't know what it was.
Such are the benefits of the Empire of the dollar, and admittedly a tough row to hoe for the gold bugs.
Roebear |
