[Karzyn]

>Gold has applications in MANY things.

Yes, but that's not what makes it so valuable. This was discussed elsewhere but copper, for example, has many more industrial uses than gold but because it's not this one special metal it isn't worth as much. Essentially, there are real applications for gold but those alone do not account for its high value.

[woodall]

Take Macs for example. The hardware does not warrant the price tag; same for the OS. Most of it is marketing and perceived/symbolic value(I'll use these terms interchangeable). Gold gets its value from many sources.

Gold is expensive not only because of its applicational value(medical, space, electronics) but also its perceive value(jewelry, shiny, ect). BitCoins are perceived value.

Also, gold is used in different conditions than copper. Remember copper oxidizes which increase resistance and can even stop a circuit from functioning.

I think the price of gold is ridiculous- 1,500GBP a lbs- but it still has real value with some of that perceived- social status- value tacted on.

http://www.youtube.com/watch?v=lONRZNCuZc4 starts around 1:30

I am not a gold advocate, but a raw resource enthusiast. Copper and its alloys are 100% recyclable and very easy to do! However, gold is not as easy to recycle as copper; and usually very harmful. I think mining is horrible, but there are reasons to the madness. ...until there is a better way.

http://pubs.usgs.gov/gip/prospect1/goldgip.html

[lurker19]

Your analysis makes sense without the tortured analogy to PC fanboyism. Macs are not in asset bubble, they are a product people enjoy, and pay a premium or aesthetics or peace of mind or lack of competition from an equivalent product, not because they hope to trade the Mac for something else later.