The Sunday Washington Post runs a column that celebrates the smart-aleck answer called Three Wise Guys. This past Sunday they answered the all important question: How much gold is there in an Olympic gold medal? The answer is, not much, because they are not solid gold, but gold plated. However, they also continued as follows:
Let it be noted that an Olympic gold medal's six grams of gold were worth about $165 at the Opening Ceremonies on Aug. 8. As of last week, they're worth about $160. Funny how the gold in Michael Phelps's eight-medal haul is materially worth $1,280, yet he's making tens of millions off its symbolism.
Not really so surprising. If you think about it, much of the value of many things nowadays is really based on their intangibles. A car is worth a lot more than the value of the metal (and plastic). A factory is the sum of multiple intangibles: the skills of the workforce, the organization, the knowledge that went into the layout of the factory, the knowledge that is embedded in the machinery, etc. etc. etc.
So, it should come as absolutely no surprise that the value of those medals is not in the gold but in the intangibles. Three Wise Guys, welcome to the I-Cubed Economy!
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