Quote:
Originally Posted by raulus
But there’s a definite difference between productive and unproductive assets. Gold, Bitcoin, cardboard, all unproductive assets. Farmland, income-generating companies, etc. fall into the productive bucket.
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Despite not normally generating an income stream, gold (and silver) straddles the line between unproductive and productive. Given its unique characteristics, e.g. the single most malleable plus the single most ductile metal and its complete resistance to corrosion under any natural circumstances, it's a very useful substance. That's why it has several thousand years of history in coinage and decorative applications such as jewellery. And because it's an excellent conductor as well, it now has its uses in high tech electronics as well.
But what's actually most important these days for gold is that its long history in coinage applications has given it cachet as an alternative to government fiat currencies. Therefore when everything goes to hell in a handbasket and government money isn't worth the paper upon which it's printed (that's the history), gold and siver will be the only currencies accepted for transactions. (And of course when everything does collapse and an alternative currency is actually needed, Bitcoin accounts will have disappeared with the internet.)
