Gold Does Not Shine – Intriguing Questions – Special Edition by Marco

Dear Ladies and Gentlemen

After my last weekly mail, I got involved in exciting conversations with Marco on the value and scarcity of an asset. As a result, Marco and I agreed that we would publish his thoughts or better his questions in this regard in this special edition. You will see many questions and no answers. If Marco’s questions lead to thought processes leading to one or the other answer, at least from one or the other perspective, this weekly’s goal is obtained.

General Thoughts

All humanity naturally generates wealth, and, naturally, we have always seemed to understand what we are talking about when we talk about value, store of value, monetary assets, or money.

Intriguing Questions

However, we are just beginning a path in which we can simply understand questions such as: What do we call value? What is the origin of value? Is there an Objective and natural magnitude of value, or is it just a subjective perception? What do we say when we say that something is a Store of Value (SoV)? What is the scarcity of an asset? How does the scarcity of an asset and its evolution influence the general perception of value? How does scarcity influence an asset’s volatility, and how is it related to economic momentum and GDP? How do fungibility and scarcity interact to define a store of value? What is the least volatile non-fiduciary asset in human history? Which assets are chosen as a store of constant value? Are there assets that have an increasing Store of Value? What does scarcity have to do with a „sound“ or „hard“ money? What impact does population evolution have on the relative perception of an asset’s value? Which are the assets that we „naturally“ choose as a Unit of Account (UoA)? How can we understand the natural laws that link the Market Capitalization of an asset to its scarcity? Which are the best assets to have a constant and growing Store of Value over time? When is gold a store of value, and when is it not, and for which periods? Is Bitcoin a Store of Value? What does market freedom have to do with a constant Store of Value?

What other real assets can be considered monetary? Can an asset with an increasing Store of Value be taken as a unit of account? What are the enhanced investment portfolios with diversified real assets, or synthetic ones, and increasing store of value? How can gold and other assets, like Bitcoin, behave in the face of an escalation of mining restrictions or an attempted global confiscation with the excuse of the environment or economic terrorism? How immune are national sovereignties to these scenarios? How is scarcity related to thermodynamics, economics, psychology, mathematics, and information and communication theory? What is a psychological black body? Can we speak of a principle of economic indeterminacy?

Food for thought, Ladies and Gentlemen? I think so.

Next Week

So next week, I will send out, as proposed last week, the consolidated views of my readers to the question of why gold does not shine anymore. First, however, let us get into the topic featured by Marco.

As always, please share your opinion with me, but please do not forget (instead of hitting the reply button) to send your messages to: smk@incrementum.li
Many thanks, indeed!

I wish you an excellent start to the day, a wonderful weekend, and above all, good health!

Yours truly,

Stefan M. Kremeth