From time to time I see many who are opposed to gold as an investment or money, challenge the value of gold coins or gold for that matter. They make statements like "what gives gold value because it’s shiny?" or "in the 80s gold was like $800 an ounce and that is about what it is right now, if you would of own the Dow you would of made more money." There are many flaws in these two statements. The reason for this is because a lot of people don’t know what wealth is. I don’t fault them because there are many so call economist with a PhD that don’t know the same.

When I say wealth I don’t mean the things that wealth can get you or the things that hold wealth, but wealth itself. What is wealth? You ask; work that is desired is wealth. If a person has money and for some reason can’t use that money to get people to do desired work or get people to trade objects that took desired work to produce; and that’s all that person has that person does not have any wealth. On the other hand if a person has no money but for some reason can get people to willingly do desired work or get people to willingly give them objects that took desired work to produce; As long as that person can get people to willingly do these things, that person has wealth.

Now for the two statements gold has value because it is one of the best ways to store desired work i.e. wealth; and if a stock trades for lower than a dollar for a significant amount of time it is delisted from the Dow. If you owned one of those delisted stocks I bet you would see why parking your money in the Dow is not all its cracked up to be. Some of the value of gold coins comes from the properties of gold. It takes desired work to get gold out of the ground. Some aspects of that desired work is finding it because it is rare, mining it, transporting it, and shaping it. That desired work and gold’s ability to store, preserve, combine, and divide desired work gives gold and gold coins its timeless value.