[T]he source of property is the organized application of violence to create it. Even on Rothbard’s Crusoe island, the violence that creates the property of the island FOR Crusoe is provided by the barrier of the sea. (That the see is analogous to the ghetto, which is the model of rebellion rothbard was using whether he know it or not, is obvious and ironic.) But Rothbard’s logic is flawed. The correct analogy is that on an infinite flat plain evenly distributed with people, how do you create the institution of private property so that one person’s will and wisdom can concentrate capital for future production and use? By the application of violence to create that institution. Can an individual do it? Not against numbers. No individual is powerful enough. But can a group do it? Yes. A group requires another group to counter it, which produces diminishing returns for those members, who are more incentivized to also obtain property than reverse their claims. An organized group can create private property by the application of violence. The source of private property is the organized application of violence to create it. Arguments that try to justify private property by some other means, moral or utilitarian, are in fact, attempts to buy the right of private property at a deep discount. And nobody’s selling at that price. You have to rase the price pretty high. And violence is a very high price. The source of private property is violence. Private property is a right one gains in exchange for the commitment to others who share the desire for private property, to use violence to preserve private property for one and all. No other method is possible.
**Everybody wants gold because everybody else wants gold, and its hard to get.**
I mean, really, that’s the reason it’s so precious.
The real question then, is how did everyone come to want gold so much? Originally it was ornamental – desirable as a demonstration for status. It still is. Most metals served as some sort of barter device in history.
But, we mostly want gold today, because every government in the world has resorted to fiat money (‘confetti and electrons’), and so gold is the only ‘naturally occurring’ currency that everyone understands is a currency. And they understand it because everyone else understands and wants it as a currency – for partly historical reasons: it was part of the balance-of-power system in Europe when Europe had its great leap forward.
After gold, the USA’s currency is more valuable and stable and lower risk, since it’s such a large economy, and has such a large military force, and that large military force controls the sea and air lanes, and as such can dictate the world terms of commerce and trade (to some degree at least) both by trade policy, monetary policy, and strategic policy.
So gold the best currency to flee to when the demand for (value of) the USA’s currency is in doubt. You cant easily make more gold, so it’s not going to lose value until the confidence in some OTHER currency is higher than the confidence they have in the price of gold.
Because, say, If the USA disappeared tomorrow so would the value of all dollars world wide. But not the value of gold. Everyone remaining would still want it. And until some other hegemon arose that gave them the same confidence, gold would remain in high demand at high price.
https://www.quora.com/Why-is-gold-considered-so-precious-and-why-does-it-have-such-high-prices-and-what-satisfaction-do-people-derive-from-this-âpreciousâ-metal