Money needs to be stable. In order to be stable, it needs to meet these 7 characteristics.
(1) It must be durable, which is why we don’t use wheat or corn, or rice.
(2) It must be divisible, which is why we don’t use art work.
(3) It must be convenient, which is why we don’t use lead or copper.
(4) It must be consistent, which is why we don’t use real estate.
(5) It must possess value in itself, which is why we don’t use paper.
(6) It must be limited in the quantity that is available, which is why we don’t use aluminum or iron.
(7) It should have a long history of acceptance, which is why we don’t use molybdenum or rhodium.
Only GOLD and SILVER fit all seven characteristics.
EVERYTHING else is inferior which makes them credit. They are essentially Gold substitutes.
If you had a race to see who was the fastest man in the world there can only be one winner and ONLY ONE person can hold the label of the fastest man in the world. It doesn't mean that the rest are slow it just means that they are not the fastest.
Value is ultimately determined by the person holding the money. "He who has the Gold makes the rules."
I think 3 and 4 may have gotten mixed up? I'm not sure how gold and silver are more convenient than lead and copper.
Gold and Silver are more limited in quantity [6]. It would be inconvenient [3] to carry around or store lead and copper to match the value that the limited quantity of Gold and Silver gives you.
Okay, that makes a little sense. I was just thinking that gold and silver are more consistent than lead and copper, and more convenient than real estate. Overall I agree with the list, maybe I'm just overthinking.
At least you are thinking. That is rare these days. lol