What is gold really worth?
Posted: Thu Feb 14, 2013 12:45 pm
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?
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?