why is gold falling?, page-30

"Its unique but useless imo"

Unique! Thats where the value is. Value is not only measured by production capacity, value can also be a role something plays.

For a currency system to truly work a paper note must represents something tangible. Not just anything tangible, but something that takes real effort to get. Anything that takes real resources to realize holds some sort of value. That tangible something needs to be also rare and abundant.

Gold can play that role. Thats where the value is. The system demands that value medium. That medium is a vital component of a functional currency system. Thats why gold is in demand.