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Doggone it, gold has value only because people think it has value. If they didn't think that, it would be as worthless as anything else people don't think has value.

I'm quite happy with my federal reserve notes ~ they are as valuable as anything else people think to be valuable.

And, as the man said, you can pay your taxes with them!

Doggone it, gold has value only because people think it has value.

I beg to differ.

With gold, there is a finite quantity....we may not know quite how much we will harvest but its supply is ruled by reality. With gold, you have a limited supply...so when the demand goes up, you can't create more, but paper money can be printed forever in endless quantities. Throughout history, governments have printed the stuff and until they run out of ink, and they will continue. (Printing too much = inflation)

If you look any one of the paper bills in your wallet and read what it says on there, you will realize that your paper dollar is an IOU from the government.

Bottom line: paper money can be created....like mad, whereas gold cannot.

There are way too many people that think gold has value to class it with paper "money". Gold and is true money because when you hold it, you're not holding someone else's debt.