<blockquote>
<p>The value of gold is it self controlled by supply-demand, which insinuates that gold is fiat, only valued because people accept it and not because it has a use case.</p>
</blockquote>
<ul>
<li>Anything traded in a market can be said to be valued by supply and demand. This includes commodities like crude oil, which certainly has a use case.</li>
<li>Although most interest in gold is for “store of value” purposes, it is used in industrial processes as well as jewelry. That’s the “use value” of gold.</li>
</ul>

CC BY-SA 4.0
2021-02-26T18:00:25.177Z
2021-02-26T18:00:25.177Z
Brian Romanchuk
<p>Question is really simple-</p>
<p>The value of gold is it self controlled by supply-demand, which insinuates that gold is fiat, only valued because people accept it and not because it has a use case. from Wikipedia &quot;Fiat money does not have significant intrinsic value or use value&quot;.
so if gold is fiat, how does it back a currency? how is a currency backed by gold, not a fiat?</p>

CC BY-SA 4.0
2021-02-26T17:42:50.880Z
Welcome to Economics:SE. Thank you for your question; please consider revising it to be more in line with our community expectations. Like many other stacks, [we expect questions to provide evidence of prior research](https://economics.stackexchange.com/help/how-to-ask). That helps us to understand the question, and avoids our repeating work you've already done. Our [help center](https://economics.stackexchange.com/help), and [other stacks](https://interpersonal.meta.stackexchange.com/questions/3224/how-do-i-write-a-good-question) provide additional resources to assist with revisions.
1muflon1
CC BY-SA 4.0
2021-02-27T03:37:01.810Z
@1muflon1 ok, will keep in mind.
user32622
<money>
How can a non-fiat currency be backed by gold?
user32622
# How can a non-fiat currency be backed by gold?

(Asked by: username_0 on 2021-02-26)

Question is really simple-

The value of gold is it self controlled by supply-demand, which insinuates that gold is fiat, only valued because people accept it and not because it has a use case. from Wikipedia "Fiat money does not have significant intrinsic value or use value".
so if gold is fiat, how does it back a currency? how is a currency backed by gold, not a fiat?

**Tags:** money
> **Comments:**
> **username_1**: Welcome to Economics:SE. Thank you for your question; please consider revising it to be more in line with our community expectations. Like many other stacks, [we expect questions to provide evidence of prior research](https://economics.stackexchange.com/help/how-to-ask). That helps us to understand the question, and avoids our repeating work you've already done. Our [help center](https://economics.stackexchange.com/help), and [other stacks](https://interpersonal.meta.stackexchange.com/questions/3224/how-do-i-write-a-good-question) provide additional resources to assist with revisions.  
> **username_0**: @1muflon1 ok, will keep in mind.  

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## 1 answers

### Answer by username_2 on 2021-02-26. Score: 1

> The value of gold is it self controlled by supply-demand, which insinuates that gold is fiat, only valued because people accept it and not because it has a use case.

* Anything traded in a market can be said to be valued by supply and demand. This includes commodities like crude oil, which certainly has a use case.
* Although most interest in gold is for “store of value” purposes, it is used in industrial processes as well as jewelry. That’s the “use value” of gold.


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