Why I don't trust gold

[seasider]

http://finance.yahoo.com/banking-budgeting/article/109666/why-i-dont-trust-gold;_ylt=Aq3qDLptisZsFsaTlk76XfC7YWsA;_ylu=X3oDMT E1NmFlMjVrBrabroadvcwM3BHNlYwN0b3BTdG9yaWVzBHNsawN 3aHlnb2xkY2FuYmU-?sec=topStories&pos=5&asset=&ccode=

[qu33nb1]

Not at all. The consumer consistently makes decisions to remove uneasiness - every action a person makes attempts to do this. But the individual (consumer) can be wrong. He could have had incorrect information or just been foolish. From an outside, 'objective' viewpoint, others could say that the consumer made a completely irrational viewpoint. But to the consumer, at the point in time, he was making a purely subjective decision that he believed was rational and was aimed at removing uneasiness.

[bigbadbear]

Not really. Most attempted a gold exchange standard or gold bullion standard, both of which are de facto fiat currencies, as Rotrabroadard detailed.

[lalala]

[tRoUbLeDTeEn!!! :p]

I assumed as much.

I know these are kind of stupid questions I'm stuck in clas for the next two hours, might as well have someone destroy my poorly asserabled ideas.

Given the above, how do you account for this behavior?


These are companies with more financial resources than many countries, exactly the kind of entity that SHOULD be tackling things like spaceflight/fission/whatever (given that it is related to their field). When I advocate government funding for such profitless incentives, it is because they have historically not been pursued, even by those with the resources to do so.

[ashleyb. :]]

i.e., no different from a fiat system. so why add the additional complications? that's my point.

[andydufresne1982]

Dollars have no actual utility beyond being money, either.

I admit I'm no expert on economic theory, but isn't lack of utility a desirable characteristic in currency, along with scarcity?