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<p>[QUOTE=&quot;fatima, post: 824136, member: 22143&quot;]Well the question implies that we are going to return to a situation where we are bartering.&nbsp; This just can&#039;t happen in a world with 6B+ people in it as any kind of organized human activity to support even a fraction of this population requires some kind of currency.&nbsp; Without it, food, housing, clothes, etc can&#039;t be produced in the quantites needed.&nbsp; &nbsp;&nbsp; i.e. Currency is needed for any kind of human society.&nbsp;&nbsp; I am ruling out some sort of end of world scenario where the world gets hit by an asteroid, nuclear WWIII, or aliens and/or advanced robots take over.&nbsp;&nbsp; </p><p><br /></p><p>So if you accept that currency is needed, then gold has always fit this purpose for 1000s of years of recorded history.&nbsp; It does so because:</p><p><br /></p><ul> <li>It does not corrode and is infinitely recyclable.</li> <li>It can be divided without destroying it.&nbsp; (try that with a paper dollar)</li> <li>It is not an obligation of a government.</li> <li>It can be used anywhere in the world</li> <li>Supply can&#039;t be increased to infinity by the click of a mouse button.</li> <li>All important world governments hold gold for insurance, as much as they discount it as a relic to the public</li> <li>Everytime a government destroys its currency, it&#039;s the gold holders that are protected.</li> </ul><p>Now as mentioned, there isn&#039;t enough gold for normal transactions, so silver is around for that purpose.&nbsp; It has the same properties for the most part and as long as it&#039;s value is expressed in terms of gold it works well too.&nbsp;&nbsp; </p><p><br /></p><p>I&#039;ve heard the you &quot;can&#039;t eat gold argument&quot; before as a reason for not holding it, but that scenario suggests some sort of armageddon that we are not going to recover from, and in that case, nothing matters.&nbsp; For anything else, which is more likely, currency will be needed and in that case gold and silver will preserve your wealth.&nbsp;&nbsp; As far as I know, I am not aware of many, if any, instances of gold holders going hungry in 6000 years of recorded human history.[/QUOTE]</p><p><br /></p>

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