COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 1031R

"Is Gold an Efficient Store of Value?"

Pradeep Dubey, John Geanakoplos and Martin Shubik

September 1992
Revised February 2002

Gold and tobacco have both been used as money. One difference between the two is that gold yields utility, on account of its beauty, without diminishing its quantity. Tobacco yields utility when it is consumed. If this were the only difference, which would be the better money?