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Friday, June 3, 2011

Why gold is money by Peter Boehringer

Peter Boehringer of DEG interviewed by James Turk of GoldMoney Foundation about the gold 's value and the physical reasons why it has been chosen, out of all physical elements, as money through the ages.Peter Boehringer : I am the first one to admit and I am a gold bug that there is not and will never be an objective value of an ounce of gold or silver , silver is a little bit different because it has good industrial use too , as to gold there is no objective value to it , psychology to some extent it is even metaphoric to some extent it has been around for so long that people some how transcend to some extent , people just believe in it , but there is a root cause to that the reason I think and I am a rational analyst here is physical strictly physical , if you look the periodic table of elements there are 160 elements so if e would pick one element to use as currency we will end up with practically only the precious metals gold silver platinum palladium and to some extent Rhodium , cause some of the elements in the table are liquid so we discard them some are gases some are just not scarce some of them may be too rare that you could not probably coin a thousand coins worldwide so that's not feasible too , some of them are toxic some of them are even radioactive so it is not something feasible , so you can go on and on and scratch all the elements from the periodic table you will end up with the precious metals ...so for all those reasons and othrs gold and silver have become the national money


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