Comment by cfinke | Hacker News Reader

Comment by cfinke | Hacker News Reader

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I would like somebody to explain why gold is inherently valuable

Basically, gold is valuable because it is useful. For example:

* Gold is the most maleable and ductile of all the metals.

* Gold is very efficient for transmitting heat and electricity.

* Gold has the highest corrosion resistance of all the metals.

* Gold does not oxidize.

* Gold can be used to make jewelry, which people find naturally attractive. It is the only "gold-colored" metal.

* Gold is used in electronic components: connectors, switch and relay contacts, soldered joints, connecting wires and connection strips.

* Gold alloys are used for fillings, crowns, bridges and orthodontic appliances.

* Gold is used as a drug to treat a small number of medical conditions.

* Small amounts of gold are used to remedy a condition known as Lagophthalmos, which is an inability of a person to close their eyes completely.

* Radioactive gold is used in diagnosis. It is injected in a colloidal solution that can be tracked as a beta emitter as it passes through the body.

* Gold is also used as a lubricant between mechanical parts on space vehicles.

* Gold is also used when making specialty glass for climate controlled buildings and cases.

* The visor on the helmet of an astronaut's space suit is coated with a very thin film of gold.

What can you do with a Bitcoin?

The features you just described are equally applicable to different kinds of metals/alloys. Arguably, other metals have even more practical applications. Why shouldn't those be more valuable than gold? In addition, the practical applications of gold you've just listed are, I expect, not what gold is normally used for. Economies, hopefully, aren't defined by whether their currency can make space equipment or electronics (especially since those are modern developments that predate the value in gold). So while what you've just said is true, it still doesn't fully answer the question.

> In addition, the practical applications of gold you've just listed are, I expect, not what gold is normally used for.

Exactly. Several countries have kept a reserve of gold for centuries, but probably not out of a fear that they will suddenly need a bunch of ductile metal.

These uses form a negligible amount of the value of Gold, presently and historically.

The current price of gold is far greater than the values of all those things. If gold price was based on intrinsic value alone it would be worth considerably less than it is now.

I'm not arguing that the current monetary value of gold is appropriate; I'm simply answering the parent's question as to why gold was "chosen" to be valuable: it has many practical uses.

Gold was chosen historically because:

1. It's shiny: it can be used for jewelry and thus display wealth and power to fellow citizens.

2. It doesn't corrode, which means it keeps it value over time. You can store it in a a chest or a basement. (And like many metals, you can melt it into whichever shape you want, which makes it easy to seize from your enemies or taxpayers or whatever...)

All the scientific and practical uses you cite are recent (last century).

Before that, warriors didn't make swords with gold (other than decorative motifs), and craftsmen didn't build ships with it either.

"Investing" in metals today isn't limited to gold, you can invest into silver, platinum and other metals which aren't that different from gold with regards to interesting properties.

Buy a pizza.

Can you send actual gold to the other of the planet within the blink of an eye?

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