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How do you measure the value of gold?
We measure the value of gold by comparing it to other things. Sorry, but there is no better answer than that. There is no gold standard (pun intended) by which objects can be measured in value because "value" is a subjective term. It would be comparable to asking how funny is an object. Different objects are funny to different people. Even if we gathered all the really "funny" object together, there is no guaranty those objects would be funny next year - unless we all agreed they were as part of a social contract. Which is basically what we do with currency. While gold does not need a social contract in order for it to retain its value, this is only because it is has been (1) very useful and (2) rare. If either of these two factors change, the value of gold will change - which it has on several occasions. WARRING: Rant about "Intrinsic Value" of gold below. Gold has no "intrinsic" value. None whatsoever.  "Intrinsic value" makes just as much sense as a "cat dog" animal. "Dog" and "cat" are referring to two mutually exclusive animals, therefore a "cat dog" is a nonsensical term. Intrinsic Value: "The actual value of a company or an asset based on an underlying perception of its true value ..." Intrinsic value is perceived, which means it is worth whatever you, or a group of people, think it is. Intrinsic value has nothing, I repeat, absolutely nothing, to do with reality.  The most obvious example of this is the purchase of a copy-right. You are assigning an intrinsic value to a copy-right by purchasing it. However, when you purchase a copy-right you are not buying ink on a page, you are purchasing an idea. Someone's imaginings that, for all intensive purposes, doesn't even exist in reality! By definition, things that do not exist do not have "intrinsic" properties - because things that don't exist, don't have any natural properties at all. "Intrinsic" according to Websters Dictionary:  "Belonging to the essential nature or constitution of a thing ... (the intrinsic brightness of a star)." An intrinsic property of an object is something we know that exists because it is a natural property of that object. Suns emit light, we know this because we can measure the light coming from it. It is not subjective. "Intrinsic Value" by definition is the OPPOSITE of "Intrinsic"