Gold and Silver Pull Back — Smart Money Buys When Others Wait 
In a world where everything — from your paycheck to your crypto wallet — claims to be “money,” Alan Hibbard asks a question few ever stop to consider:
What actually makes something a true store of value?
In Episode 3 of Hidden Secrets of Value, Alan breaks down the 12 properties that define real money, exposing why most currencies fail—and why gold continues to stand the test of time.
A $100 Gift Card and a Painful Lesson
In his twenties, Alan received a $100 Pier 1 gift card — a little stash of value he decided to save for later. But when the retailer went bankrupt, his “$100” instantly became worthless.
That simple experience revealed a hard truth: currencies aren’t designed to store value. They’re meant to move — fast. Dollars, gift cards, and even some digital tokens all share one fatal flaw: centralization. Someone, somewhere, has the power to change the rules.
Gold, silver, and to some degree Bitcoin, don’t. And that’s where the real story begins.
The 12 Properties That Define Real Money
Most people think money just needs to buy things. But as Alan explains, the market has always chosen certain assets as money because they check twelve critical boxes.
True money must be:
Portable, durable, divisible, fungible, quantifiable, recognizable, desirable, liquid, secure, verifiable, arduous, and decentralized.
Those last two — arduous and decentralized — are the game-changers.
If something can be produced cheaply or manipulated easily, it cannot hold value over time. That’s why fiat currencies, printed at zero cost, always erode purchasing power. Gold, by contrast, demands real energy to mine and refine. It’s arduous—and that’s precisely why it endures.
Why “Scarcity” Isn’t the Secret
People love to say “gold is valuable because it’s scarce.” But Alan flips that thinking on its head.
Scarcity alone doesn’t make something valuable. Effort does.
Gold isn’t just rare — it’s hard to get. It takes real energy, labor, and time to produce every new ounce. That’s what keeps it honest.
By contrast, digital currencies or fiat money can be created instantly, without cost or constraint. Scarcity can be faked; arduousness cannot.
The Chuck-E-Cheese Economy: Intrinsic vs. Extrinsic Value
Alan’s childhood story drives the point home. He saved 585 Chuck-E-Cheese tickets, imagining they held lasting value. Years later, he realized they didn’t — because their worth depended entirely on what someone else decided they were worth.
That’s the difference between intrinsic value (value rooted in physical or natural properties, like gold’s chemical stability) and extrinsic value (value created by human behavior or law, like the dollar’s legal-tender status).
Monetary value, Alan explains, is extrinsic by nature — but assets with intrinsic value have a crucial advantage: they have a floor.
If gold were ever “demonetized,” it would still hold physical value. A fiat currency, by contrast, could fall to zero overnight.
So, What Actually Passes the 12-Point Test?
After examining all twelve properties, only three assets make the shortlist:
- Gold — checks all 12 boxes
- Silver — sometimes passes, depending on use
- Bitcoin — potentially passes, but lacks intrinsic value
Everything else — dollars, bonds, stocks, even real estate — fails in one way or another. They either depend on central authority, lose durability, or can be replicated too easily.
Gold remains the benchmark not because of tradition, but because it’s the only form of money that fully resists manipulation, decay, and dilution.
Real Money Doesn’t Expire
Whether it’s a gift card, a corporate currency, or the dollar in your pocket, most “money” today is a promise made by someone else. Promises can break. Gold doesn’t.
If you want to understand what truly holds value — and how to protect yours — watch the full episode of Hidden Secrets of Value.
🎥 Watch the full video: The 12 Properties of Money
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People Also Ask
What are the 12 properties that make something real money?
Real money must be portable, durable, divisible, fungible, quantifiable, recognizable, desirable, liquid, secure, verifiable, arduous, and decentralized. Alan Hibbard breaks down each of these in Hidden Secrets of Value: The 12 Properties of Money. Watch the full episode on GoldSilver’s YouTube channel.
Why does gold hold its value better than paper money?
Gold takes real energy and effort to produce — what Alan calls arduousness — making it resistant to inflation and manipulation. Unlike paper currency, which can be created at zero cost, gold’s supply grows slowly and predictably, helping it preserve purchasing power over time.
What’s the difference between intrinsic and extrinsic value?
Intrinsic value comes from an asset’s physical or natural properties (like gold’s durability and conductivity). Extrinsic value depends on human behavior or government decree (like the dollar’s legal-tender status). Alan explains why monetary value is always extrinsic — and why gold’s intrinsic value gives it a critical safety floor.
Why isn’t “scarcity” the most important property of money?
Scarcity alone doesn’t create value — effort does. Gold isn’t just rare; it’s hard to produce, requiring real energy and capital investment. That “arduousness” is what gives it lasting worth, unlike digital or fiat currencies that can be created instantly. Alan Hibbaard explores this idea fully in The 12 Properties of Money on YouTube.
Which assets check all 12 boxes for real money?
Only a few assets qualify: gold, sometimes silver, and possibly Bitcoin. Everything else — dollars, bonds, or gift cards — fails one or more properties. Alan shows why gold remains the benchmark for real, enduring value. See the full analysis in Hidden Secrets of Value: The 12 Properties of Money.
