I'm not saying they're a bad investment, I just don't understand how a value is applied to them. How is a value applied to gold? For its industrial usage in electronics? Jewelry? I know they've been used for thousands of years, but who determines they're worth? If I decide gold isn't worth being used for jewelry because the only thing worth getting is a watch, do I get to decide on its price?
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Yes, you get to decide that you don't want to buy it, so you affect the global price of gold microscopically. Just like i will make the price go up microscopically if i buy some.
https://youtu.be/iFDe5kUUyT0?t=78
The main value proposition of gold is that it fulfills the idea of 'money' really well.
Store of value
divisible
can't be counterfeited (the most important part is that gov'ts can't print it)
easy to carry
Paper money is more divisible and easier to carry, but fails because you need to trust a gov't to not cause hyperinflation.
Should the paper currency go up parallel to the amount of gold available?
Only if it's a gold backed currency.