If Gold's Value Bottomed Out, World Markets would Collapse

A favorite saying about buying gold coins in its industry is ‘gold's value is never at zero’.

This confirms the fact that gold contains intrinsic value which stocks, cash and bonds do not have. All can confirm that gold is as real as one can have it to be; it is real. You are able to feel the gold’s worth when you hold a piece of it. The shiny metal feels heavy; different from other pieces of worldly asset.

The Rise and fall of Companies

Many companies’ stocks have taken on a roller coaster ride where some have soared up to the sky only to ground zero at some point. A good example of such a high flyer is the railroad stocks; even big companies such as WorldCom and Enron were not spared and now exist in obsolesce. But you will not find such incidents on gold. It is an accepted fact that gold value will never spiral down to zero.
What if?

But under Murphy’s Law, there is always a possibility for zero value gold. There may be some factors which may just bring that on. If that were to happen, the world markets will certainly collapse and the whole world would be in great chaos.

From long ago till today, gold is popular as a jewellery piece. If gold were to become worthless, it must first be considered as undesirable in jewellery and adornment purposes. But that would seem an outrageous thought; hence, the next possible factor that could cause gold to turn undesirable as a jewellery piece is for poverty to strike the whole world so low that there is no demand for buying gold to be adorned. This situation could only be affected by a really adverse economic depression that the world would find difficulty in recovering from.

Financial reserves

Gold has always been many governments’ financial reserves including world banks. When gold becomes of no value, governments’ financial reserves will also be of no value. These governments would become bankrupt with financial chaos impacting the world.

As a metal, gold is a main element in many industrial applications as it is valued for its high electric conductivity, high corrosive resistance and strong malleability which resulted in a wide range of applications. There must be an alternative element to replace gold before the value of gold drops to zero.

Conclusively, it is most improbable for gold to be of zero value as the shiny metal has always been appreciated for its beauty, portability and uses; this is unlikely to change anytime now or later. It may be true that stocks and bonds can turn the tide on themselves in terms of worthiness but for gold, never.