Why Gold? by Adrian Day

Through history, the reasons to own gold haven’t changed much, and it’s usually been a good idea. From Adrian Day at internationalman.com:

At a time when many investors are calling gold “a relic,” and many younger ones, in particular, are buying Bitcoin instead, it is worth going back to fundamentals and looking at gold’s role as money over thousands of years. I am not here to attack Bitcoin. Rather, I am here to defend gold.

Gold has an advantage that Bitcoin does not have, that Bitcoin inherently cannot have, which is its age. Gold has survived and performed its job for literally thousands of years. We shall have to wait a little longer to say that Bitcoin is as good as gold.

Nearly two-and-a-half millennia ago, Aristotle wrote his famous treatise on money. Money serves as a medium of exchange, a store of value, and a unit of account. In his treatise, Aristotle listed the characteristics of ideal money.

Money should be divisible, which is why we do not use fine art as money. It should be fungible, which is why we do not use real estate as money. It should be rare, which is why we do not use iron ore as money, and so on. Aristotle concluded that only gold has all these attributes and is the ideal form of money.

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