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0 pointsDylan168073y ago0 comments

It's not just a few goldbugs thinking the intrinsic value is all of the value, it's tons of them that think the intrinsic value provides a solid floor. At this point the currency/speculative/prestige value is almost all of the value of gold. If you had a pile of gold and it dropped down to its intrinsic value, it'd be almost the same as a drop to zero.

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roenxi3y ago· 1 in thread

> At this point the currency/speculative/prestige value is almost all of the value of gold

It isn't a currency, it has no obvious potential to be a currency and if you own it you are either a government or insulted. At best, only speculative value could be a factor of these 3, and I don't think the serious money that sets the price is speculating - and gold is a terrible market to speculate in, so they probably aren't setting the price as much as going broke.

The value of gold is set by how hard/easy it is to mine.

Dylan16807OP3y ago

Scarcity does not directly cause value. Scarcity can fuel speculation and prestige.

Plenty of things are hard to mine yet don't have much value, so nobody tries to mine them. The difficulty/ease of mining can provide a cap on value, but it does not provide a floor. It is not the reason something is expensive.

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