Hi Joe, thanks for the extensive comment on my article. The reason I didn’t include a nod toward GDP is twofold. Firstly, the intent of the article was primarily to call out the logical flaw in the “gold is the guarantor of value” fallacy. The second is because GDP isn’t as simple as people imagine. For example, healthcare spending is counted towards US GDP but most of that spending is wasted or unnecessary, so this artificially inflates GDP without being equivalent to having invested in an asset that yields a real return. Furthermore, balance of payments disparities need to be taken into account when calculating the nominal “net value” of the society whose total factor output supposedly is reflected in the value of their currency. And finally, as people invest in currencies as “stores of value” the fact is that some currencies (for example the US dollar) are perpetually over-valued relative to nominal GDP simply because they are seen as “safer” to hold than other currencies.

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