[waqasx]

Gold has unique properties like every element has. But gold jewellery costs a months salary cuz we believe it is valuable, it is purely psychological. Its cost has Nothing to do with its chemistry or value to society. Same goes for btc.

[TylerE]

Actually it does. One of those unique properties of gold is that it is incredibly non-reactive, which means it doesn't visible age, discolor, or tarnish. The value of that for jewelry should be self-evident. It's excellent ductility and malleability are valuable properties as well.

[waqasx]

all the things you are saying are just arguments for making gold a good medium of exchange, which it is no longer used for. not one of your arguments suggests that it is a good storage of value, which it used to be because of its scarcity. if indians stop paying doweries in gold and arabs stop finding its shininess alluring, the value will plummet. there is nothing intrinsic in gold that makes it valuable

Warren Buffett put it well. "Gold gets dug out of the ground in Africa, or someplace," he said. "Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head. Source:http://online.wsj.com/news/articles/SB1000142405274870403270...