Thanks for posting, but I'm not sure I understand the positioning.
While I agree with the premise that gold is an asset and not someone else's liability, how is it that diamonds and gemstones are a derivative of a lower asset class?
And did I miss silver? Or is 'gold' representative of PMs in general?
Pax, gemstones are classed in Exter's analysis as having much lower utility than metals primarily because they are not fungible. Gold and Silver are, and always have been, 'Money' because one oz of gold or silver is exactly the same as any other oz of gold or silver. This works as a medium of exchange. Diamonds, on the other hand, are unique. No two are the same, and only an expert can value one properly. They are, in essence, luxury items and little more useful than, say, Rembrandt paintings for exchange or trade.
Ah, okay. That makes sense. Thanks Quintus. Pax