You are misinterpreting my statement.Vonz90 wrote:Um, no. You do realize that the labor theory of value is very heavily vested in communist economic theory right? It is the basis of the concept that payment (i.e. benefits of) an enterprise should be based on who is putting the most labor into an activity rather than who is providing the most value and also relative to risk; both of which can only be determined by the market.Termite wrote:What D5CAV said.
In addition: gold and silver are difficult to counterfeit, and they represent work; also known as TIME.
FWIW, we have had this conversation here on TGC before.
I was not discussing the labor theory of value as you described it. All labor(time) is not equal, some has greater value than others.....in general. In our modern society, a cardiac surgeon's time is considered more valuable than a McDonald's worker's time.
Gold and silver are very useful and relatively uncommon metals. This has been much of the essence of their value. I really do understand supply & demand determining value. And I quite understand that gold can, by fiat, be declared illegal as currency. FDR did so(whether he had the legal authority to do so is another discussion).
But thousands of years of human history gives evidence that gold and silver are recognized by humans as being a valuable commodity, and desireable world-wide, except for the most primitive of societies.
And yes, we have indeed had this discussion before. Scott Free, Chris Byrne, myself, and a few others were major contributers to the discussion.