INTRINSIC VALUE

 

Does gold have intrinsic value?

Aristote argued that it does because it is used in jewlery - and the very qualities that make it perfect for jewerlry also make it perfect for coinage - it is constant, malleable, divisible and it doesn't tarnish.

These are rare qualitities.  And many also find it to be quite beautiful.

Beauty is subjective, however.

I had a freind who was a very bright and accomplished musician who told ,me once that Bach was like white noise to him.  I thought this to be very sad.  To me Bach is the voice of God.  .

But can you say the music of Bach has intrinsic value when not everyone can hear it?

Of course you can.  Because over many centuries it has been so valued by many people.

That is really the test.  Intrinsic Value is proven as it is appreciated by many over long periods of time.

These things can range from Elements or precious stones or medicinal herbs that have characterisitics that many find useful and/or beautifull, to art and artifacts and compositions that many find useful, compelling, beautiful over long periods of time.

Over many centuries if something is valued by many people for charracteristics that are immutable, it has intrinsic value even if some people don't apprecitate it.

Gold has been used as a currency for ovr 5000 years now, just as it has been used in jewelry for at least that long.  You can admire gold Egytian bracelets and gold Greek coins in museums all over the world, just as you can hear concerts of Bach and Beathoven at Symphonies all over the world, just as you can admire the painting of Da Vinci and Vermeer and Titian at museums all over the world.

Of course, New Things constantly arise and are admired for short periods of time: Ganga Style, the Macarena, pogs, Investment Tulips, Beanie Babies, Crypto Currencies... Do they have intrinsic value?  

We'll know in a few hundred years.  Sometimes you find out after only a few months

Meanwhile no other currency but gold has ever lasted for more than a few decades (except silver which gernerally exists in a bimetallic system with gold.  

Trust the test of time.  Don't fall for fads.