Aluminum used to be more valuable than gold but is now a metal only valuable for industrial purposes.
What were to happen to the world economy if gold became like aluminum?
Aluminum used to be more valuable than gold but is now a metal only valuable for industrial purposes.
What were to happen to the world economy if gold became like aluminum?
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May 31st, 2009 at 9:19 pm
aww lol, ill answer in a kiddish way-
I wuld nver be able to wear pretty necklaces and say Gosh, tats nice!
May 31st, 2009 at 9:19 pm
If everyone had my own preferences aluminum would still be more valuable than gold — I actually need and use aluminum.
I don’t think it would affect the economy at all if gold were worthless. Some investors and government central banks that hold gold would lose their investments and the gold-mining companies would go bankrupt or just mine something else. If gold were worthless, there’d be no gold-mining for decades, because all the gold that wastefully exists in form of bars, bullion, and coins could meet the real economic demand for gold for decades.
But big deal, investors lose money all the time, and central banks can absorb those losses, considering the gold doesn’t do them any good anyhow.
May 31st, 2009 at 9:19 pm
Gold as a metal would have a lot of use if it were not valued as wealth storage. Gold is rare, much much rarer than Aluminium is, therefore it is more expensive. Gold as heavy metal, with its strong antioxidant, conductivity, anti-radiation and so on, does have a lot intrinsic values for use, but the cost for using gold has been relatively high. instead, human being uses gold as a currency, and has been using it this way for thousands of years, and that also means gold does have the value to play the currency role and will continue the particular role, unless we suddenly find so much gold from another planet that it would be better to use gold for industrial values rather than the storage values. unfortunately, human cannot find more gold ores within the earth, or from other planets within our near future..
the gold, per se, won’t affect the global economy, but bring wealth changes between nations. as we have no common currency in use globally, the gold is definitely in the position to serve as nations’ foreign reserves, for gold’s value will not be manipulated by any sovereign nation but the global gold market. when the world economy gets troubles, gold will show off its value arrogantly, and stabilise foreign exchange…
May 31st, 2009 at 9:19 pm
Gold is also useful in medicine and dentistry.
2008 gross world product was over $62 trillion.
The total amount of gold ever mined is about $4.4 trillion worth. This is about equal to monetary real estate losses in the current recession, so that’s about the effect you would have if gold suddenly became worthless.
May 31st, 2009 at 9:19 pm
God paves His streets with it. I understand the oceans are full of it.
Having every nation on a Gold Standard is not a bad idea.
May 31st, 2009 at 9:19 pm
it’s not just for its intrinsic value, it’s also because it’s easy to carry, measure, and verify impurrities.