On the Self Perpetuating Nature of the Demand for Gold

On the Differing Demands for Gold

For many people the debate about whether or not bitcoin can become a relevant world money boils down to the idea that bitcoin isn’t backed by a real world non-monetary use case.

Considerations of the effect of the Price of Gold on the Demand for it as Jewelry

Its interesting to think of the effects that radically different gold value trends might have on the demand for it as a jewelry (for certain functions and applications). If the worth of gold skyrocketed such that a $200 gold necklace rose to $5,000 or $20,000 we can imagine scenarios where someone wanting to wear a shiny necklace for an occasion would not feel comfortable wearing the same necklace at such a high valuation (security concerns come to mind for example).

The Great Gold Bubble

I always found it interesting one could assert that the lust for the shininess for gold was a prehistorically born survival mechanism. It seems to me that Occam's razor would favor a more natural explanation such as the accidental production of gold as a byproduct of some other more useful process.



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