Home > Gold > What’s the big deal about gold?

What’s the big deal about gold?

“Philip” asked the following on Steve Keen’s DebtWatch Blog site:

Why should money be linked to gold as opposed to cadmium, hafnium, zinc, tungsten or any other element?

I responded thusly:

Philip,

Google “Austrian School and gold” or “gold as money”.

(1) Malleability (gold and silver, but gold in particular, is the most malleable of metals – great for coins) (2) relatively stable supply and relatively rare (3) resistant to decay/oxidization (4) easy to work with at relatively low temperatures (again for coinage) (5) easy to identify as gold or silver (they shine) so difficult for counterfeiters to counterfeit (unlike banks counterfeiting through embezzlement of paper savings) (6) history – gold is already a monetary unit (XAU on foreign exchanges around the world).

How long before everyone gets it?  Gold at $1224 tells me more people are “getting it” than ever before!

Advertisements
Categories: Gold
  1. No comments yet.
  1. December 7, 2009 at 10:33 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: