What makes Gold valuable as money?

Financial concepts, and opinions about different forms of currency.

The short answer to this question is very simple... Everyone needs price stability to prosper, and to afford society as a whole to achieve goals, and to advance technologically.

Here is an example : let's say you wake up one morning and decide to go to breakfast at your favorite restaurant. Your seated at a table, and the waitress hands you the menu. To your surprise, the price of a cup of coffee is marked on the menu at $10.00
above the normal price of what you were accustomed to pay for it from the day before. The next day the price of the cup of coffee tripled again. Then, the next day it sharply dropped in price, but only to rise sharply again the following day.

My point is, everyone relys on price stability to function in society, and to conduct business... This is non discrimitive. The rich, the poor, the smart, and even the stupid; they all rely on price stability to live harmoniously with one another.

Ponzi schemes do not work indefinitely. I spent countless hours wasted trying to make ponzi schemes work on paper. I could not do it.Whatever adjustments I tried to make to the scheme in order to make it work... Failed. The scheme always ended the same way.. its effectiveness always diminished in time. The first ones in a ponzi scheme make the money, and the last ones in lose their money.

A transaction is the closest thing to a win/win concept. The seller wants the money and the buyer wants the goods or service. Both buyer and seller get what they want. In this sense it is a win/win condition. But if we delve deeper into the transaction being made... their is a win/lose component too.

The seller profits off the markup of the goods or service being transacted with the buyer. The markup is the sellers gain, but the buyers loss at the time of the transaction... a win/lose condition. So in mathematical terms.. a transaction equals a win/win component plus a win/lose component at the time of the transaction. The transaction has been the basis of human development and achievement since the beginning of recorded history.

Physical Gold was established to represent a win/win condition.. Both the buyer and the seller wanted it all the time. Physical gold needed to exist for the win/win condition to exist.

With fiat currency... The physical asset does not need to exist for the win/win condition to exist. In other words, fiat is IOUs written against other IOUs written against other IOUs based on one physical asset.. a finite amount of gold.

The fiat system works well for awhile but in a sense.. it defies the laws of nature, which is you get something for nothing. Fiat always collapsed given enough time as is recorded throughout history.

The whole world now runs on fiat money. Will price eventually breakdown, hyperinflate, deflate, stagnate, or even not exist in time? Is there some kind of common denominator between intrinsic currency and non intrinsic currency?

Who Knows!!

What I do know is that precious metals were an established form of money for thousands of years. In the imagination of people, precious metals hold price value when all else does not.

Would money become a combining of the intrinsic, and non intrinsic.. together working in harmony? I don't know. Time will tell.. But just to be on the safe side I think its always wise to have some precious metals in hands grasp.