Anybody see anyone using Gold to get to front of gas lines in NYC or Jersey ? Didnt think so. Gold is a religion not a currency alternativeThis really shows how idiotic Cuban is when it comes to gold. No one offered to pay for gas with Dallas Mavericks tickets either. If one showed up to get to the front of the line with a one ounce gold coin or 4 tickets to a Dallas Mavericks game, which do you think a person would take to allow someone to take his place at the front of the line.
— Mark Cuban (@mcuban) November 2, 2012
When you have a good money (gold) and a bad money (Federal Reserve notes) you always spend the bad money , and hold on to the good money.
If someone tried to pay for season tickets, with gold coins, to the Dallas Mavericks 2012-13 season, how long do you think it would take Cuban to agree to accept the gold? If someone tried to pay for season tickets to the Mavericks, in exchange for the same amount in season tickets of the Golden State Warriors, how long do you think it would take Cuban to say "no."
Through a very long process gold (and silver) have emerged as money over the centuries. Ludwig von Mises via his Regression Theorem explained how this occurred.
The wiki on The Theory of Money and Credit provides a quick overview:
This [The Theory of Money and Credit] is Ludwig von Mises' first major work, originally published in German in 1912 as Theorie des Geldes und der Umlaufsmittel. It has ever since been recognized as a basic textbook of monetary theory. The most important theoretical contribution was to integrate monetary theory with general utility theory. This had been considered an impossible accomplishment, since money is (aside from its value as a commodity) valued for its purchasing power. How then can it have a utility of its own? Mises solved this problem through the monetary regression theorem, developing the earlier work of Carl Menger. He showed that the purchasing power of money at a particular period or "day" stems from its value the preceding "day." This process goes back until one arrives at a value due entirely to the monetary commodity's value as a non-monetary commodity. Money was then originally a commodity like any other.Although, it is clear, given his snide remark, Cuban doesn't understand the regression theorem and its providing of a sound scientific basis for gold as a currency, he note doubt would act as the Regression Theorem suggests and accept gold coins in payment from one who would want to pay for Mavericks season tickets with gold. In other words, the theory is stronger than Cuban's mouth.
(ht Stephen Davis)