Re: Re:Global Currency

["prakash chandrashekar" <prakash7uc@rediffmail.com>]

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------------- Original Message --------------
Srinath S <srinaths@usa.net> wrote:
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Here is a question. Why is gold so expensive? I have thought a lot about this,
but cannot come to a conclusion other than "for historical reasons".

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AS a store of value, gold has few competitors. It is a stubbornly
unreactive metal and its coins last for centuries without tarnish. ITs
lustre is attractive to the human psyche.

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 It is simply that, historically gold has been expensive and used as a
standard which continues today. 
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Yes, the historical part has a say over here. But that is one reason we may
have to re-examine gold. Money has two uses, transaction and store ofvalue.
Gold is good in the second, but in the first, I reallly don't think so.


regards
Prakash

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