What intrinsic value???

mmissinglink

mmissinglink

Active Member
For those who still believe that silver and gold have a specific intrinsic value, please tell me exactly what amount (to the cent if you can) that is for each metal.

Thanks.



P.S. Oh, and tell me how you derived at that amount.




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I think the intrinsic value of a metal, say silver, is spot at 999, in a recognised form. Junk silver, pre-decimals etc, may or not meet spot unless demand is up. If there is no demand, then refining and fabrication costs need be considered.
 
sammysilver said:
I think the intrinsic value of a metal, say silver, is spot at 999, in a recognised form. Junk silver, pre-decimals etc, may or not meet spot unless demand is up. If there is no demand, then refining and fabrication costs need be considered.
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What would that specific amount (you can calculate it in AUD or USD) be at the time of your response?

When you assert "spot at 999" do you mean the current spot price of 1 ounce of silver (or gold) of .999 purity?

If yes, does that mean that .998 pure or .90 pure silver or gold have no intrinsic value or do they have a different intrinsic value in your view?

What is the difference in $$ at the time of your response, in your view, of the cost of production (includes all in costs) of 1 oz of .999 pure silver (or gold) vs 'intrinsic value'? Be as specific as you can.



Thanks.



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Trying to calculate the "intrinsic value" of gold and silver is a fools errand.

A better definition of the "value" of anything is whatever someone is prepared to pay for it. In other words, the market (spot) price. No other number is really important. You can value things via some other method, but if the market doesn't agree with you then you'll never get that price and you've wasted your time.
 
Gold, and silver have value outside of a fiat money system, which is the beauty of them. Presumably 1 ounce of gold 4000 years ago, bought the same amount of goods, and services, as it does today. It doesn't matter what race, religion, age, language, skin colour, culture etc that someone comes from, they will look at gold, and silver, and think it is beautiful, and want to possess it, which is why it has intrinsic value.
 
My underpants have intrinsic value.

It doesn't matter what race, religion, age, language, skin colour, culture etc that someone comes from, they will look at [my underpants], and think it is beautiful, and want to possess it...
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Ronnie 666 said:
Intrinsic value measured in what ? paper that has no intrinsic value :D
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You still haven't shown that gold or silver has intrinsic value.

And besides, how else do you calculate and come up with an agreeable and measurable value for an ounce of silver or gold? The rest of the world uses the value of a currency as delineated in the spot price.

If gold and silver have intrinsic value this must be some specific value outside of any value that anyone attaches to these things.



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chartsurprised said:
Well, many would claim that gold has no intrinsic value contrary to some that it has because of its natural properties. In my opinion, gold has that value if one pays for it. And so with silver it is less valuable per ounce. In relation with this, I only have this to share about intrinsic value and its real definition for gold and silver.

Reference: http://www.marketoracle.co.uk/Article35739.html
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Thanks for responding.

I already know that lots of people have different views on the question of whether gold or silver have intrinsic value. My question to members here was and is, do you yourself believe gold and silver have a specific intrinsic value and if yes, what is that specific amount and how do you derive at that value amount?

I don't need to read any more links of what someone else believes about an alleged intrinsic value of gold or silver as I already have read plenty of opinions on this on the WWW. I am more interested in members here and in their own personal beliefs, descriptions, and specific value amount.

Thanks.





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It depends on your definition of intrinsic value.

If you want to attach a number in dollars to it, than you may want to go with the financial definition: "It is ordinarily calculated by summing the discounted future income generated by the asset to obtain the present value" (Wikipedia)
Since gold does not generate income I would say its intrinsic value is likely zero.

If you use labor theory of value, the process of producing an item and the costs involved in that process is a measure of the item's intrinsic value.
With this definition you could say that it's the average cost of production.

With other more philosophical definitions of intrinsic value it's not possible to attach a number to it, as far as I know.

I don't look at intrinsic value at all, given the ambiguity, but only at the market value.
 
The question is flawed. There is no "specific value" to anything - especially not the fiat currency that you are asking others to measure it in.

The value of anything to anybody is "it depends" and all you can say from any transaction is that, at that point in time, the buyer valued something at least as much as the fiat currency they exchanged for it, while the seller valued it less than the fiat currency they received in exchange.

Value is subjective to the individual and is a ranked on an ordinal scale not a cardinal scale with all values shifting continuously based on what I currently possess, what I want in the future, what information I have and what my current physical circumstances are.

Based on my current circumstances I am not willing to purchase another ounce of gold at the current market price of ~A$1,780/oz. Why? Because I have alternative uses for my current savings that I value more.

But on the flip side, I am not willing to sell any of my unallocated at the current market price of ~A$1,780/oz (less conversion costs). Why? Because I value those holdings more than other potential alternative uses.

So, at the time of this post, the gold I currently own has a value of at least A$1,780/oz. If someone was to offer me $2,500/oz right now, no questions asked, then I would definitely part with some, but not all. So you could say that I value some of my gold at somewhere between $1,780-$2,500/oz (but value some at >$2,500/oz). However, the value to me of acquiring gold that other people own is currently way less than $1,780. I'm guessing that if someone offered me a verified ounce right now for $1,200 then I would buy it. Hence, you could say that the value of an additional ounce to me right now is somewhere between $1,200-$1,780. These indicative price ranges will no doubt change by tomorrow and again by next week, month etc.
 
mmissinglink said:
I already know that lots of people have different views on the question of whether gold or silver have intrinsic value. My question to members here was and is, do you yourself believe gold and silver have a specific intrinsic value and if yes, what is that specific amount and how do you derive at that value amount?
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The value of gold to me, something completely outside of the financial system, independent of any local currency, as an object that I can easily carry and hide, an object that becomes the focus of attention in a room of people, an object desired by anyone, especially with an excess surplus of anything, e.g. pigs, houses, food or tools, , , is priceless.

If the day comes that my excess reserves of something that I need runs short. I will then find someone with an obvious excess surplus of that item and talk about a trade or just use the local currency system. They might also want to get their hands on a priceless item for themselves instead of looking after their excess reserves of general stuff all the time.

Gold will always remain priceless to me. The intrinsic value of gold is not inside the metal but the way that metal works for human existence.
 
Ronnie 666 said:
Intrinsic value measured in what ? paper that has no intrinsic value :D
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Paper that the very active SS sales threads swap metal for..... :P
 
mmissinglink said:
Ronnie 666 said:
Intrinsic value measured in what ? paper that has no intrinsic value :D
Click to expand...



You still haven't shown that gold or silver has intrinsic value.

And besides, how else do you calculate and come up with an agreeable and measurable value for an ounce of silver or gold? The rest of the world uses the value of a currency as delineated in the spot price.

If gold and silver have intrinsic value this must be some specific value outside of any value that anyone attaches to these things.



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You are wasting your time asking this... I have never seen a valid response.
If you want to hear real crickets, ask How to calculate the true value of silver using fundamentals..... :D
 
The Expanding Man said:
I thought the intrinsic value of silver was whatever JPMorgan said it should be??
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I think Bordsilver nailed it.

This may happen because of (insert anything), that may happen because (insert anything).

Surely irrelevant?
 
The Expanding Man said:
I thought the intrinsic value of silver was whatever JPMorgan said it should be??
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You have been temporarily brainwashed by the permabullshitartists.
In time, you will most likely see reality. :)
 
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