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- Why does gold have value? 9 answers
I'm not an economics guy but this question has been stuck in my head for days.
I wonder why gold is used as a "standard value thing". I mean, the value money goes up and down everyday, but gold never loses value. The value of things is up to the price of gold. Is it because of the amount of gold in this world is "limited" and has almost entirely been exploited?
I usually use gold to compare the price of stuff today with stuff in the past. For example in 1980 a normal car was $246 = 123 ounce (assume that 1 ounce = $2 in 1980), and today a car is worth $162,249.3 = 123 * $1319.1 (1 ounce = $1319.1 in 2014) still 123 ounce / car. Does that mean gold never loses value?
And one more question, my friends said "If the population of this world, for some reason, is decreased by a half, the gold price will go down because human needs change when there are less people with more resources". Is that right?