04-09-2008, 11:06 PM
Hi,
To a large extent, the cost of gold does effect it utility. As an example: if gold were as cheap as copper, it would completely replace copper for traces in circuit boards, but when all the design parameters are considered, gold loses because of its high cost. Of course, unlike diamonds which have few uses and are relatively plentiful, gold has many (potential) uses and is relatively rare. That alone is enough to drive the vale up, though perhaps not enough to match its cost.
--Pete
Quote:. . . The monetary value of gold has no relationship to its utility.That is a true statement, but it is not at all what he said. A lot of things have little or no correlation between their cost and their value. Diamonds, for instance. Many gem size and quality uncut diamonds are crushed into industrial powder to keep the (inflated) value of gemstones up.
To a large extent, the cost of gold does effect it utility. As an example: if gold were as cheap as copper, it would completely replace copper for traces in circuit boards, but when all the design parameters are considered, gold loses because of its high cost. Of course, unlike diamonds which have few uses and are relatively plentiful, gold has many (potential) uses and is relatively rare. That alone is enough to drive the vale up, though perhaps not enough to match its cost.
--Pete
How big was the aquarium in Noah's ark?