What if there was no gold?

[Bean]

What if there was no gold? What would fill the roll of the permanent portfolio for inflation?

[MediumTex]

Probably shiny beads or maybe coconuts.

[Bean]

Probably shiny beads or maybe coconuts.

Silver beads and platinum coconuts?

I believe it needs to meet the criteria of money; (1) durability, (2) divisibility, (3) transportability, and (4) noncounterfeitability.  Is there anything that even comes close to gold in these aspects?

[Pointedstick]

Probably shiny beads or maybe coconuts.

Silver beads and platinum coconuts?

I believe it needs to meet the criteria of money; (1) durability, (2) divisibility, (3) transportability, and (4) noncounterfeitability.  Is there anything that even comes close to gold in these aspects?

Ammunition! 

[WildAboutHarry]

Harry recommended silver, real estate, Swiss francs, etc. in the past.

Pick a durable one from this list by Tom Lehrer

[MediumTex]

Silver, platinum, tobacco, liquor, AA and AAA lithium batteries.

Those are a few.

[MachineGhost]

I believe it needs to meet the criteria of money; (1) durability, (2) divisibility, (3) transportability, and (4) noncounterfeitability.  Is there anything that even comes close to gold in these aspects?

My vote goes to natural colored diamonds, especially if they are graded, laser stamped with a serial number and then sealed in a tamper-proof container.

[dragoncar]

I believe it needs to meet the criteria of money; (1) durability, (2) divisibility, (3) transportability, and (4) noncounterfeitability.  Is there anything that even comes close to gold in these aspects?

My vote goes to natural colored diamonds, especially if they are graded, laser stamped with a serial number and then sealed in a tamper-proof container.

Does not meet criteria 1, 2, or 4.

edit: I am bad at grammar

[Ad Orientem]

Probably silver or whatever had taken gold's place as the most universally recognized store of value for the last 6000 years.

[MachineGhost]

Does not meet criteria 1, 2, or 4.

How so?  Diamonds are very durable, small carats are worth more than small denomination gold coins and counterfeiting diamonds is gonna be impractical because natural diamonds have flaws, synthetics do not.  Ever heard of tungsten gold?

[dragoncar]

How so?  Diamonds are very durable, small carats are worth more than small denomination gold coins and counterfeiting diamonds is gonna be impractical because natural diamonds have flaws, synthetics do not.  Ever heard of tungsten gold?

Diamonds chip and crack quite easily - they are hard but brittle.  That makes them divisible in a sense, but it would be hard to divide say, in half.  Plus, the value of diamonds would be the equivalent of numismatic value... i.e. you can't just weight them, you have to look at them in a loupe and then grade them.  Different flaws and/or cuts would lead to wildly variable values.  All things being equal, a diamond two times the weight is more than two times the price, so dividing in half destroys the value. 

I don't know why you think it's hard to add flaws to synthetic diamonds, I haven't seen a source either way.

Tungsten gold... yeah but all you have to do to detect it is cut into it.

I don't love gold or anything, but diamonds seem like a terrible choice.  Is there any diamond-rich area where they are used as money?  How do they handle the above problems?

[MachineGhost]

I don't love gold or anything, but diamonds seem like a terrible choice.  Is there any diamond-rich area where they are used as money?  How do they handle the above problems?

Other than Africa, I have no idea, but they sure saved the Vietnamese refugees.  Its easier to stick and transport a bunch of diamonds up your #2 than bulky gold coins.  So, I think diamonds are real-world battle-tested.

There's a reason why smart thieves go after diamonds, coins, stamps, etc..  They have ready cash value anywhere in the world.

[MediumTex]

So, I think diamonds are real-world battle-tested.

Sort of like Charlie Sheen (3:50)?

http://youtu.be/Y4zvNu4rzKU