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Subject: why does money have value
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Posted by: Mister Necroer
why? it just paper...

Money is just representative of work you've performed. It's a standard unit that removes the hassles of the old bartering system (You have three chickens but need your fence repaired, guy who repairs fences doesn't want three chickens.)

The reason why money has value is because people value the work they did to earn that money.

  • 12.13.2012 10:42 AM PDT


Posted by: Capt Hair
This^


And just wait for the economy to fall apart, with no economy, metals will just become a hunk of pretty rock while other commodities will have more value.

Unlikely precious metals will always retain value even in a barter/trade system.

  • 12.13.2012 10:43 AM PDT
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Realistically, gold is a stupid metal to back your currency against. Only 12% of currently bought gold is used for technological/industrial use. Most of demand is jewelry ("Oooh shiny") or investment ("OMG world is ending").

Compare that to silver where well over half the market is industrial demand.

Posted by: What Is This1
Unlikely precious metals will always retain value even in a barter/trade system.

Silly assumption in my opinion.

[Edited on 12.13.2012 10:45 AM PST]

  • 12.13.2012 10:44 AM PDT

The HELL you are! These are precious gifts to me and they are non-transferable! How dare you regift my challenge prize. You might as well hock a wedding ring for beer money. -DeeJ


Posted by: ultratog1028
Why? It's actually not a useful metal (by itself), beside conduction of electricity.
Bling, bro. Gold doesn't corrode, it is used as a 'shield' for spacecraft, it's even used in medicines, and like you said it's perfect for circuits.

  • 12.13.2012 10:45 AM PDT

"The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. But no price is too high to pay for the privilege of owning yourself."
-Nietzsche

Posted by: DarkestSeptagon
Posted by: ultratog1028
Why? It's actually not a useful metal (by itself), beside conduction of electricity.
Bling, bro. Gold doesn't corrode, it is used as a 'shield' for spacecraft, it's even used in medicines, and like you said it's perfect for circuits.
It's not really perfect because it's too damn expensive, but we use it a lot in nanofabrication because the actual amount of material in the circuit is tiny. Silver is also used frequently.

  • 12.13.2012 10:47 AM PDT


Posted by: A Good Troll
Realistically, gold is a stupid metal to back your currency against. Only 12% of currently bought gold is used for technological/industrial use. Most of demand is jewelry ("Oooh shiny") or investment ("OMG world is ending").

Compare that to silver where well over half the market is industrial demand.

Posted by: What Is This1
Unlikely precious metals will always retain value even in a barter/trade system.

Silly assumption in my opinion.


Rich people like gold. That's why its so valuable. Even if we went back to a barter trade system and most people were blacksmiths or hunters or fur trappers, they would still trade their wares for gold because they know rich people will always buy gold.

Also it's very easy to handle, meaning just the right amount of malleable.

[Edited on 12.13.2012 10:51 AM PST]

  • 12.13.2012 10:51 AM PDT


Posted by: A Good Troll
Realistically, gold is a stupid metal to back your currency against. Only 12% of currently bought gold is used for technological/industrial use. Most of demand is jewelry ("Oooh shiny") or investment ("OMG world is ending").

Compare that to silver where well over half the market is industrial demand.

Posted by: What Is This1
Unlikely precious metals will always retain value even in a barter/trade system.

Silly assumption in my opinion.

Not really gold will always be viewed as valuable as it has been for thousands of years. Industrial metals are a good idea to invest in since their use increases over the years, but they gain a lot of their value for use in industry and the demand for that. In a failing economy that demand goes down. Now personally if you are investing in precious metals based on their industrial uses there are better ones to invest in than silver.

[Edited on 12.13.2012 10:52 AM PST]

  • 12.13.2012 10:51 AM PDT

"Life is constantly fleeting from your grasp even from the very day it's bestowed upon you, but the shadow of death is always there, waiting for its chance to take you away."

"Even though many may not think so, ignorance and innocence are one and the same. The only difference is that one sounds nicer."

"I once knew a man who spent his entire life contemplating where we go after our death....it's a shame he realized it a second too late to tell anyone."

Because we assigned it value.

  • 12.13.2012 10:52 AM PDT

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Posted by: A Good Troll

Posted by: Disambiguation
Posted by: DarkestSeptagon
Paper money is backed up by gold.

I think.
Not in America.

Not anywhere in the world.

What about the Euro?

  • 12.13.2012 10:54 AM PDT


Posted by: TomoK12
What about the Euro?

What about it?

  • 12.13.2012 10:56 AM PDT

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Posted by: What Is This1

Posted by: TomoK12
What about the Euro?

What about it?

It has a solid backing of gold.

  • 12.13.2012 10:57 AM PDT
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Posted by: TomoK12
What about the Euro?

All currencies in the world are fiat. They are not backed by anything physical other than the government's promise.

This allows freedom in monetary policy and lack of disruption from commodities markets.

If the dollar (or Euro or anything else) was still gold-backed, the US government just couldn't print money whenever it pleased. They would have to have the gold on hand to back that dollar because it guarantees you can exchange that dollar for a fixed amount of gold.

  • 12.13.2012 10:57 AM PDT
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Posted by: TomoK12
It has a solid backing of gold.

LOL, you mean the material in the coin?

The gold-looking part of one/two Euro coins are a nickel-brass alloy. The smaller coins are "Nordic Gold" - a copper/aluminum/zinc alloy.

[Edited on 12.13.2012 11:01 AM PST]

  • 12.13.2012 10:59 AM PDT

Posted by: Recon Number 54
Life is a journey, if you spend all of it with your nose in your map, you may miss some of the best parts.


Posted by: MyNameIsCharlie
Because we agreed it does.

Seriously, that's why.

  • 12.13.2012 11:01 AM PDT


Posted by: A Good Troll

Posted by: TomoK12
It has a solid backing of gold.

LOL, you mean the material in the coin?

The gold-looking part of Euro coins are a nickel-brass alloy.

If that is what he meant then I must say someone needs to look at gold and/or brass more often to tell the difference.

[Edited on 12.13.2012 11:02 AM PST]

  • 12.13.2012 11:01 AM PDT

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Posted by: A Good Troll
Posted by: TomoK12
What about the Euro?

All currencies in the world are fiat. They are not backed by anything physical other than the government's promise.

This allows freedom in monetary policy and lack of disruption from commodities markets.

If the dollar (or Euro or anything else) was still gold-backed, the US government just couldn't print money whenever it pleased. They would have to have the gold on hand to back that dollar because it guarantees you can exchange that dollar for a fixed amount of gold.

Hmmm, maybe I read that article wrong.

  • 12.13.2012 11:02 AM PDT


Posted by: TomoK12
Hmmm, maybe I read that article wrong.

What article?

  • 12.13.2012 11:03 AM PDT
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  • Intrepid Legendary Member

blarg.

Because we assign it a value.

  • 12.13.2012 11:03 AM PDT

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Posted by: What Is This1

Posted by: TomoK12
Hmmm, maybe I read that article wrong.

What article?

"How Gold-"Backed" are currencies today?".

  • 12.13.2012 11:05 AM PDT

Halo 3 is where the morons of the universe congregates.

I am thinking of an old story. "Three Billy Goats Gruff" (hint the troll dies at the end)

Posted by: zarrowsmith
If you had an electron microscope, you still couldn't find the -blam!- I don't give.

Here in the US, the USD isn't backed by anything, if we go back to the good standard the US economy would flat line.

  • 12.13.2012 11:06 AM PDT

<3

It's used as a medium for trading. Instead of trading a cow for 10 chickens, you trade a cow for paper which could get 10 chickens. But with that medium, you don't have to get the chickens if you don't want to. You can use it for butter, milk, eggs.

That is what money is for.

You can trade your services for a house and food, but instead of the actual house, you get paper which can get you that house. So you can get whatever house you want that you can afford. Or what your services are worth. People who offer valuable services get more paper. People with services which are not so valuable get less paper which means less food less house less clothes.

  • 12.13.2012 11:20 AM PDT

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