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That is obviously false on it's face.

If it were only worth pennies an ounce, numerous industries wouldn't be paying what they do for it. The fact that many industries value it at several thousand dollars an ounce is self-evident from their continued use of it.

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This is interesting to think about: For gold I'd say the demand is coming from both industries and from people who want it as a store of value. If it was only used as an industrial chemical, then surely the price would drop because there would be less demand.

Some bitcoin advocates will talk about how useful it is as a currency, and I wonder how much bitcoin is actually used for purposes other then to hope you can sell it to someone else for more than you paid.

If the price dropped, it would be even more in demand and reach equilibrium. Gold has several unique mechanical properties, being the most corrosion resistant metal and one of the most electrically conductive, as well as being able to be flattened into extremely thin sheets and drawn into extremely fine wire.

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