Have You Caught Gold Fever? The Value of That Shiny Metal Is as Artificial as Paper Money

From Alternet:

The economic doomsters and investment advisers are engaged in a collective hallucination when they see growing value in gold.

Quick, check out this hot investment tip! For decades now, the Federal Reserve has been suppressing the true value of gold to keep its prodigious impact out of the market, which is currently dominated by fiat currencies like the dollar and light-speed binary code transactions like high-frequency trading. If you stripped away the Fed’s continuing manipulation, gold’s free-market value, currently hovering around $1,000 per ounce, would increase by multiples. Wait, are you yawning? Why are you leaving?

Here’s why: This isn’t news. The Federal Reserve, along with investment banks, hedge funds, governments and even you (yes, you), have not been just manipulating the so-called real value of gold and other financial instruments for decades, you’ve also been manipulating reality itself for centuries. Because gold is just chemical element, or a precious metal as it is called in the business, which means you can’t eat, grow or use it to power your house or car.

But what gold is good for, and admittedly has been since the beginning of recorded history, is storing notional value: It is simply an idea made shiny, attractive, and up until our recent Great Depression rerun, pretty lucrative. In other words, it is a hyperreality, a consensual hallucination to borrow a term from novelist William Gibson. It has value as a currency because we decide it does, just like the fiat currency system that replaced it, not because of anything it can actually do on its own.

[Read more at Alternet]

9 Comments on "Have You Caught Gold Fever? The Value of That Shiny Metal Is as Artificial as Paper Money"

  1. The stuff that dreams are made of…

  2. Hadrian999 | Mar 28, 2010 at 6:44 pm |

    all value is “artificial”
    any object is worth as much or as little as someone is willing to pay for it.

  3. Diamonds too, of course.

    Everything else too, of course…

  4. Well in terms of usefulness I suppose gold does have the upper hand though. It's a wonderful conductor, and it's shiny which makes distracting people that think paper money actually HAS an inherent value that it's somehow losing a lot easier to do.

  5. ThirdSection | Mar 29, 2010 at 9:50 am |

    So really then, if we are to make government fiat currencies more valuable, they must be shinier…

  6. GoodDoktorBad | Mar 29, 2010 at 11:23 am |

    The value of Gold is, in practical, physical terms, a bit higher than paper Money. As Spooky mentioned, as a conductor, it is second only to platinum in terms of metallic elements. If I am remembering correctly, silver is third. Anyway, paper, in itself is not really good for much at all, other than printing images on it.

    What people don't really think about is that Gold or Money cannot in themselves, provide you with anything more than the illusion of security. Money didn't build your house, people did. Money didn't put food on your table, people did. While the statement “money doesn't grow on trees” may be true enough, the things that really allow us to survive DO grow on trees, so to speak. Resources are what is important, the most valuable of which are (albeit refutably) HUMAN.

    I felt it necessary to write this rather elementary commentary because it seems that the realization of these
    concepts are becoming increasingly necessary as the continuing collapse of our “economy” unfolds.
    What could be more valuable than life itself? In our constant quest for cash, how often do we really think about it? Obviously, not enough…..

    • Hadrian999 | Mar 29, 2010 at 3:56 pm |

      human resources are over valued, we have more than we need and supply is always growing

  7. Some thoughts on the notion of value and of its distortion and debasement;


  8. Who is surprised our out of control government ram pilfer slamming into’ the debt engine… future debt’ “The whole thing is going to crash,” Just as soon as one more disaster” ‘Hits there about as prepared, for that! As Santa is to Christmas yea a fake guy bringing presents to all the good children’ All our government produces is confusion and debt….
    So stay tuned MSNBC’ Missed information will be sure to sign you up for there fake news dither blah…
    The leading news vine liars and Hey if they believe there own lies all they have to do is dangle a big screen TV from Santa’s sled. And play lady gagya’ Loaded down with devises put there by china \”Owe, “Where really thinking safety’ Dumb’ ditties and us’ dumb Americans, buy it lock stock in spy wear, delivered right to your door from the secret service’ cargo port in the back of his red sled packed with spy devices made in ..‘
    China crap!
    Currency Trading Center

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