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[Andeerz]

Indeed, AngleWyrm!  I agree wholeheartedly.

If a metal is going to be valuable, it must have utility, even if the utility is simply looking shiny and pretty and/or being a representation of wealth (because of its rarity(in commodity currency) or being able to be easily made into a tool of representing wealth (a coin in fiat currency)). 

[Vattic]

I understand that gold is rare and pretty but fail to understand what gave it such value in the past. Anyone care to explain?

I wish gold was not rare here on Earth simply for the sake of electronics.

Also, _{I like yer Minecraft creations... >.>}

Cheers.

[forsaken1111]

I understand that gold is rare and pretty but fail to understand what gave it such value in the past. Anyone care to explain?

I wish gold was not rare here on Earth simply for the sake of electronics.

Also, _{I like yer Minecraft creations... >.>}

Cheers.

It was both the rarity and the physical appearance as far as I know. Today we also value it highly for its electrical and chemical properties.

[Vattic]

So basically because we are magpies at heart? It seems strange that an economy can be based on something that had at the time no use beyond looking nice. Would gold be valuable if it was as rare but not pretty / does rarity alone give value?

[forsaken1111]

So basically because we are magpies at heart? It seems strange that an economy can be based on something that had at the time no use beyond looking nice. Would gold be valuable if it was as rare but not pretty / does rarity alone give value?

I doubt it. The value came from the desire by the elite and wealthy members of society to obtain Gold coupled with its rarity.

Why do you think diamonds were valued? Physical attractiveness. Later on diamonds became useful in the industrial sector as well, once we learned how to use them.

Of course the rarity of diamonds is grossly overhyped. They're common as dirt really in some regions and diamonds can be made in a lab which are almost indistinguishable from natural ones. It's just carbon atoms in a specific sequence after all.

Hell, you can make a diamond with two coffee cups, some oil, a string, some mechanical pencil lead, and a microwave.

[Tiennos]

So basically because we are magpies at heart? It seems strange that an economy can be based on something that had at the time no use beyond looking nice. Would gold be valuable if it was as rare but not pretty / does rarity alone give value?

Gold is also one of the few metals that won't corrode naturally. So it will remain shiny indefinetely !

[Vattic]

Tiennos I'd forgotten that gold didn't tarnish. Thanks for clearing that up both of you, though it still seems silly.

Other than that you say diamonds aren't so rare I'd value them over gold because they are lighter and therefore easier to travel with.

[Sheepherder]

It was both the rarity and the physical appearance as far as I know. Today we also value it highly for its electrical and chemical properties.

This was correct.  The best currencies are inelastic but high in value, and until people started making useful things out of it gold met both criterion (because you only wanted it to showcase how important you were).

So basically because we are magpies at heart? It seems strange that an economy can be based on something that had at the time no use beyond looking nice. Would gold be valuable if it was as rare but not pretty / does rarity alone give value?

I doubt it. The value came from the desire by the elite and wealthy members of society to obtain Gold coupled with its rarity.

So... exactly what he said.  Elites didn't value gold for any particular reason either, except it was pretty and rare.  Magpies at heart, really.

Also, I assume (hope?) the last line was humor.

[Vattic]

Also, I assume (hope?) the last line was humor.

My last line? If so I will clarify by saying that I'd rather not carry lots of heavy gold bars around if I could easily change them into diamonds and back again without much loss of value. I will further clarify by saying I got the idea from elsewhere; I don't know if he knew his history but I once heard a Jewish diamond dealer claiming that so many diamond dealers are Jewish because it's easier to flee in the night with your wealth in diamonds than in bags of cement (his example).

[forsaken1111]

Other than that you say diamonds aren't so rare I'd value them over gold because they are lighter and therefore easier to travel with.

I don't see what rarity has to do with weight. What did you mean?

So basically because we are magpies at heart? It seems strange that an economy can be based on something that had at the time no use beyond looking nice. Would gold be valuable if it was as rare but not pretty / does rarity alone give value?

I doubt it. The value came from the desire by the elite and wealthy members of society to obtain Gold coupled with its rarity.

So... exactly what he said.  Elites didn't value gold for any particular reason either, except it was pretty and rare.  Magpies at heart, really.

Also, I assume (hope?) the last line was humor.

I was also answering his hypothetical question of 'would gold be valuable if it was rare but not so pretty'. And if you meant my last line, no it wasn't humor. You can use two coffee cups to make a makeshift crucible. Lay two mechanical pencil lead perpendicular to one another, tie around the intersection with a string to keep them stable and touching. Douse the string and intersection of leads with mineral oil to give the microwave something to heat.

It takes a while, but this will make a diamond. It will have a lot of impurities from the graphite though. Basically all you need to make a diamond are heat and pressure. The crucible of the two coffee cups (you invert one and use the bottoms) keeps the heat and pressure high, the string holds the graphite sticks together and keeps the oil in contact. The oil is heated by the microwaves and transfers the heat to the graphite.

Diamond.

[ZebioLizard2]

That thing on how to produce a diamond was busted by mythbusters in one of their episodes, they even done that specific trick in an online setting for extra's.

[Vattic]

I don't see what rarity has to do with weight. What did you mean?

Check the post I made before your last one.

Or to explain again: The same value expressed in gold would weigh more than in diamond. So in terms of using something to hold value diamonds posses greater utility. I was imagining being a travelling adventurer or similar in DF.

[Lord Shonus]

Gold was used as currency for a great many reasons, historically. It was very distinct, so that it was very difficult to counterfeit. It's softness and low melting point meant that it was easy to work, which was handy for the minters and made it easier to subdivide (in the past, it was fairly common to cut or break a coin in case you didn't want to spend the whole thing). It also, in pagan cultures, often was used to represent the Sun due to it's colouration.

[forsaken1111]

And in adventure mode gold coins make handy improvised throwing weapons!

[AngleWyrm]

Why do you think diamonds were valued?

One reason their price is high is the effort that goes into obtaining them. Labor costs of mining, safeguarding, and transporting diamonds makes them expensive to own. And there's people who just want stuff because it's expensive.