faith-based money
Any store of value or means of exchange is faith-based, amigo, because very few things have instrinsic value apart from our belief that they do in fact have it.
There is nothing intrinsically worthy about gold. Sure, it shines, it is pretty, it is the subject of greed, it is useful in many applications, etc. But it has its down side, too, as it is heavy, difficult to transport, subject to the greed of others, etc.
Why not diamonds? They are easier to move, just as pretty, etc.
Tulips, paper money, shells, bits of mirrors, you name it, have all had their day. To suggest that gold is somehow exempt from faith is to delude oneself. Otherwise, its price would not gyrate as it does.
Having given you all this wisdom, I admit that I don't expect gold to lose its luster anytime soon. Myths die hard.
I'll buy gold when bullion pays dividends or interest or when its value seems unrealistically too low to . |
