Gold's actual value as a metal is a small fraction of its current price. The vast majority of the value of gold is speculatory in nature.
Re:Bitcoin Falls Below $400
by Houshalter on Thursday April 10, 2014 @09:57PM
(#7570852)
Electronics are a new thing, for most of history it was primarily used as money. I also don't think the majority of it's value comes from jewelry.
It was used as money because of its ornamental value and it derived its ornamental value from its inherent properties, for instance the fact that it doesn't perish,rust or degrade.
A cursory read of history would show that jewelry/ornaments are huge factor in the historical value of gold.
Not true, gold has both ornamental and practical value (can be used in semiconductor components for instance).