What is gold really worth?

[Catfish4u]

What is gold really worth? Economic theory says its worth should be a result of supply and demand. I see where there are limitations on the supply side. Could the supply ever be greatly increased via some other method than traditional mining? Maybe filtering ocean water or the soil below? Maybe from the moon or even another planet?

Where is the demand for gold? There is very little industrial demand for gold. It seems the only real use is for jewelry? It seems that mainly central banks are stockpiling gold. Is gold that much different than fiat money in that central banks 'want us to think it is very valuable'?

From what I can see silver has many more uses. It also is very hard to mine as it is usually a byproduct of other mining. From my opinion I think the gold to silver price ratio should be much lower. What are others thoughts?

[uthminsta]

I anticipate many well-crafted responses to this. But I have had this thought for years: why is it that we place a value on REAL money (silver, gold, platinum, whatever else) using units of FAKE money (dollars, etc)?

I had this sudden clarity moment: holy crap, THE MEASURING STICK IS FLAWED!

[uthminsta]

I just created this. Can anyone else actually see it?
http://qkme.me/3szt2t

[hags]

I anticipate many well-crafted responses to this. But I have had this thought for years: why is it that we place a value on REAL money (silver, gold, platinum, whatever else) using units of FAKE money (dollars, etc)?

I had this sudden clarity moment: holy crap, THE MEASURING STICK IS FLAWED!

It's not "fake" money...It's the current world reserve currency backed by the world's strongest military.....

Muammar Gaddafi called it fake and look where that got him...

hags

[jasmatk]

I anticipate many well-crafted responses to this. But I have had this thought for years: why is it that we place a value on REAL money (silver, gold, platinum, whatever else) using units of FAKE money (dollars, etc)?

I had this sudden clarity moment: holy crap, THE MEASURING STICK IS FLAWED!

It's not "fake" money...It's the current world reserve currency backed by the world's strongest military.....

Muammar Gaddafi called it fake and look where that got him...

hags

Its backed by thin air thats fake in my book.

[Engineer]

What is gold really worth? Economic theory says its worth should be a result of supply and demand.

In reality, it's worth the cost to produce plus a fair profit. The cost to produce rises with demand, however, as gold rich land becomes more valuable with the potential for higher profits. Fuel, labor, and equipment costs tend to remain relatively steady.

[inflationhawk]

I anticipate many well-crafted responses to this. But I have had this thought for years: why is it that we place a value on REAL money (silver, gold, platinum, whatever else) using units of FAKE money (dollars, etc)?

I had this sudden clarity moment: holy crap, THE MEASURING STICK IS FLAWED!

Flawed or not, it's this "fake" money that is necessary to transact in ordinary life. Dollars put food on your table, gas in your tank and gets you everything else you consume. The idea is to have as few of these depreciating dollars on hand as possible and not put you and your family at risk by not having them when you need them. All surplus dollars should be put to use in some form or other: purchasing equity in something that generates value or purchasing something that holds its value better than its depreciating paper form.

[Frank t]

i seen that picture u

FUXXING hilarious