Gold Ownership

Anyone reading this post owns some gold. They may not know that they own gold, but they do, because gold is an essential part of electronics. There is nothing that quite compares to gold when it comes to electric conductivity, so it is used wherever conductivity has to be near perfect.

If it wasn't for the fact that gold is expensive, gold would be used for all wiring. Copper is only used because it functions as a tolerable alternative.

If gold was cheap, it would be used for all sorts of purposes. It is not only a better electric conductor than copper, it is a better heat conductor as well. Copper pans would therefore be replaced with gold pans.

Gold is malleable and non-corrosive, so copper roofing would be replaced with gold roofing. If gold was cheap, it would be everywhere.

But gold is expensive. It is therefore only used where it is essential, or where it can serve as a mark of social status. Gold jewelry is sought after, not only because it is beautiful and non-corrosive, but because it conveys social status.

With gold being near infinitely divisible, it is possible to own any quantity of gold. Poor people can own a small quantity, rich people can own more. But in both cases, it serves the same purpose when used in jewelry. It boosts the social standing of its owner. Rich people do not go to dinner parties without adorning their wives with a bit of gold. And the same goes for poor people.

The result of all of this is that gold is owned by almost every person on the planet. It also sets a floor for how low the price of gold can go. Should gold go down in price by a lot, demand would explode, pushing the price back up.

By Senado Federal - Fotos produzidas pelo Senado, CC BY 2.0, Link