Friday, 9 July 2010

Gold is something without intrinsic value

Who said that?

Not me.

"Willem Buiter, a former professor at the London School of Economics who is now the chief economist of Citigroup, has called gold the subject of “the longest-lasting bubble in human history”. He says that he would not invest more than a sliver of his wealth “into something without intrinsic value, something whose positive value is based on nothing more than a set of self-confirming beliefs.”"

People often google for the "real value of money" and then visit this blog. 
There are so many people who lament the fact that fiat money has no intrinsic value. They all call for going back to the gold standard.

Meanwhile, gold is also something without intrinsic value according to the chief economist of Citigroup and former professor at the London School of Economics.

Oh, what a wonderful place the market is. Without so many different view points, there would be no market at all. For every buyer there is a ..... yes, you guessed it right, a seller!!

So then, what is real value if neither gold nor fiat money has any intrinsic value?

Kindest regards

Nicolaas Smith

Copyright © 2010 Nicolaas J Smith

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