Gold isn't a currency? Ben Bernanke would agree yet Alan Greenspan would not and that's okay. We can disagree and do so politely.
Gold is not a mere commodity- it is a monetary metal. 'They' would like you to think of it as a mere commodity and lump it with other commodities but this label cannot explain its extremely low declining marginal utility (DMU). You are welcome to give it a shot and explain its ultra low DMU without invoking its role as a currency/ monetary metal- I would love to hear your opinion. Gold is also precious like platinum but platinum does not have even a low declining marginal utility and is very much subject to the vagaries of supply and demand.
The fact is that gold is kept as an asset by central banks and it lent with interest (gold lease rate) with interest payable in GOLD just like a currency.
