Over 6,000 years, scientists have classified the 92 unique natural elements on our planet. These elements have different physical properties and the relative rarity on earth.
The removal of elements requires an input of energy , labor , time and information ( input units ) .
The relative abundance of the 92 natural elements together on earth is immutable and imposes a cost that is perpetual relational relationship. Here the cost term is not intended to mean dollars , euros or other external extraction process measures , but instead of input units (energy , labor , time and information ) .
The natural properties of gold made the perfect intermediate (money) given that any goods or services in the real economy is composed of varying combinations of input units.
Gold is the rarest of elements taken on a significant scale. Gold has an equally important feature: immortality. It does not tarnish, putrefaction, evaporate, or decomposition. It does not have a life cycle and for reasons unbeknownst to us, resists entropy, one of the most important natural laws which dictates that all made of energy will be the tendency toward disorder over time.
Of the 92 natural elements, there is only one that could have evolved as an intermediate product (money) representing any transaction of cooperation among participants in a free market.
The critical point is that any transaction in the real economy (no matter what industry or geography) ultimately represents various combinations of input units as a cost: energy, labor, time and information.
Try to think of any good or service of the real economy. Regardless of the complexity of a service or simply good, you will realize this axiom to be true.
rarity of gold extraction means absorbs more input units than any other element or compound. gold immortality means that hard while everything else including the input units decrease with time. Therefore, gold is always higher than the input units in any transaction within the real economy time.
Bring it all together, the total stock of gold represents billions of past transactions that imposes a proportional future value equivalent input unit .
Because gold is forever, all the gold ever mined grows in size with time as a physical inventory Increase (Securities) Property Hundreds of millions of people, and sea in the form of jewelry or bullion. By contrast, input units decrease and not have to resort Securities or Equivalent inventory. They must always be reproduced or reconfigured, redeveloped in the future.
This Grand Gold Action has accumulated operating cost that grows with each additional unit of gold extracted from the earth. This cost itself consists of thousands of millions of historical transactions, where various combinations of reduced input units exchanged for gold.
Of course, this gold property values is not a person. It is widely distributed among hundreds of millions of human beings from all geographies, Culture, and different: capacities and natural endowments. Gold pesos each property or decorated by someone can claim a Transaction A past where he or she decided to exchange their units falling input.
Each participants in a cooperative system that values Do professional skill, work, time and resources with decreasing input units. This! Boosts your unable to respond to the relationship between the value of its units decreasing input and gold. They can convert their gold, and sea to the reduction of input units or convert decreasing input units to gold.
This point is very important if you want entender Why the price of Long Term Gold INCLUDED When an external measurement is USING always reflect the relationship between natural Elements.
It follows then a that in a free market, the Future Value of esta Total population of de Oro (Gold prices) will be bid up or down proportional units of energy, labor, time and information of participants in the real economy.
Conclusion
In this piece, I have shown how it evolved gold in money due to physical (natural law) and Darwinian anthropology. Gold 's rise had nothing to do with economics or economists.
I have also shown how long-term price relative to the decrease in the units must be cleaned to a certain balance . I believe that this equilibrium is as follows :
The gold = Present value of the input units exchanged historically.