[LeoTinnitus]

Precious metals unlike cryptocurrencies are physically tangible. In the event of a massive economic crash that causes policy to swing back to gold backed currencies, you can easily use it as a valid form of currency and is borderline a universally understood currency beyond culture, race, language, region. Cryptocurrencies aren't like that.

Look at Argentina's crash in the 90s or 00s (can't remember exactly when). The middle class was literally wiped out. It's why people don't save, they just buy assets with value in preparation for the next collapse cause the perception is the government will inevitably lead it to ruin again.

Anthony Bourdain's episode of parts unknown in Argentina really showed the mentality really well.

[WantonQuantum]

Ahh but that's the point! It's "a universally understood currency" because it has had that status for a long time.

Gold has a status that is different from other metals and other expensive jewellery (e.g., diamonds).

Why gold though? The physical properties of gold make it nice to look at and touch. It's somewhat rare but not too rare (platinum would be a rubbish currency).

So without anyone really thinking about it, gold has become not just something that is valued for itself but something with an established trading value that includes a premium that derives from its status as universally accepted and valued.

That premium derived from its status as universally accepted and valued is exactly the proportion of its value that is the Tinkerbell effect. In a collapsed economy, gold is extremely useful and valuable because everyone agrees that it is.