Everything has intrinsic value, that is true. The crux is that the specific intrinsic value is recognize by everyone and is agreed upon as a stable form of money, of exchange.
I’m saying what you deem your 5 bundles of beet root is worth, is not the same for me or anyone else. Same with gold if we’re thrown into a barter economy.
As of today, the value of gold is based off the USD pair. So now we have a floor frame of reference around the world.
If economy goes to shit, and we’re thrown back to the barter economy, gold is only worth what each party agrees it is.
The worth of the USD today is based on barrels of oil, aka the ‘petro-dollar’.
"gold is only worth what each party agrees it is."
Oh absolutely I agree with you there and really we should be arguing the merits of a silver and not so much gold. During the depression an ounce of gold could buy a city block just about.
The value will always be determined by the parties in the transaction and of course we'll never know what that value would be until a scenario like that would play out. Let's hope it doesn't
Everything has intrinsic value, that is true. The crux is that the specific intrinsic value is recognize by everyone and is agreed upon as a stable form of money, of exchange.
I’m saying what you deem your 5 bundles of beet root is worth, is not the same for me or anyone else. Same with gold if we’re thrown into a barter economy.
As of today, the value of gold is based off the USD pair. So now we have a floor frame of reference around the world.
If economy goes to shit, and we’re thrown back to the barter economy, gold is only worth what each party agrees it is.
The worth of the USD today is based on barrels of oil, aka the ‘petro-dollar’.
"gold is only worth what each party agrees it is."
Oh absolutely I agree with you there and really we should be arguing the merits of a silver and not so much gold. During the depression an ounce of gold could buy a city block just about.
The value will always be determined by the parties in the transaction and of course we'll never know what that value would be until a scenario like that would play out. Let's hope it doesn't