I know people out there who have invested a lot in gold under the belief that in the event of like complete societal collapse or hyperinflation, they could use it for purchasing.

I have the hunch it’s a scam, but I haven’t learned enough monetary theory, business, or economics to understand why.

  • rc__buggy@sh.itjust.works
    111·
    2 days ago

    Ever since we found gold we have valued it. I don’t understand the position of, “Oh, no one will value it!” We love the shit and it’s a store of value. How much value is dependent.

    • Mesophar@pawb.socialEnglish
      91·
      2 days ago

      You can’t eat gold, and you can only trade gold for food if that person can trade the gold for something else. I’m not going to say there’s no chance of gold being valuable in a societal collapse scenario, but I’d rather wager with resources than a pretty, shiny metal. I don’t see how that’s a position that can’t be understood. Gold works as an intermediary exchange, but direct barter can always be counted on.

      • SreudianFlip@sh.itjust.works
        2·
        2 days ago

        Gold is good as notation for big things, like an excavator and a dozen barrels of diesel. You can’t trade that shit for cucumbers and canned tuna.

        You can use gold as an excellent long lasting conductor for electric equipment. You can make it very thin. It would make a comeback in basic dentistry, as you can actually eat it: it’s non-poisonous. Doesn’t tarnish. A smith can do a lot with gold.

        Gold is a resource. That said, I don’t have any right now. Just some silver coins, and some packaged goods like knives and flour mills (business leftovers). Given the market insecurities now and gold’s all time high price, wish I did.

      • rc__buggy@sh.itjust.works
        1·
        1 day ago

        Yeah, I know. I have what many would consider an absurd amount of rice and beans and salt so it makes sense to store something that won’t go bad. Gold never spoils. Never.

    • meco03211@lemmy.world
      6·
      2 days ago

      Because it was found by people in society. It was given value within an established society. I’m not saying no one will value it. I’m saying that until there is an established society, it won’t hold value. Then if you do end up in a society, you need to sway them to adopt gold as a currency while keeping your gold stores secret.