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<p>[QUOTE=&quot;mikem2000, post: 4301219, member: 30574&quot;]Hey Chris,</p><p><br /></p><p>Long time You were right the first time. US Dollars is money, Gold is not. </p><p>The primary definition of money is an agreed upon unit of exchange. That is the way it always has and always will. The store of value is secondary BUT, FRN&#039;s numbers in a bank, ARE&nbsp; indeed a store of value. They have&nbsp; value because people agree they have value. The fact that someday in the future they possibly may not have value is irrelevant to the conversation. There are never any guarantees what will be worth something in the future.</p><p><br /></p><p>Think about salt. That was once considered an extremely valuable commodity and a store of weath, but now, not so much.</p><p><br /></p><p>Now let&#039;s look at Gold. People certainly value Gold and most likely they will for a very long time, but its value is not really based on it&#039;s worth as a commodity. It really only has minor industrial uses and we have more than enough Gold in holes in the ground to meet those needs for over 100 years. Gold is really valuable for the exact same reason as US currency. It is valuable because people agree it is valuable. Gold is actually very fiat like. Sure there is a chunk of useless metal to &quot;back it up&quot; but what exactly does that&nbsp; mean???.</p><p><br /></p><p>So in conclusion the definition of money really hasn&#039;t changed and never will, for the simple reason, if something for whatever reason stops&nbsp; being a store of weath, that means it can no longer be used as a medium of exchange since no one values it, until then, a stack of Benjies is Money and IS a store of wealth.[/QUOTE]</p><p><br /></p>

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