This is simply not true. Gold is useful for things, from industry to jewelry. Because it is useful as an object, it is possible to find someone who wants to buy your gold. People really don't understand these ideas at all. It's not necessary that *everyone* has a use for the substance, it's only necessary that there is enough demand for the intrinsic commodity to provide a market. If there is a market, then that commodity becomes useful as a medium of exchange.

There's lots of things that are scarce but don't have significant value. Scarcity is only one dimension. To be valuable, something needs to be scarce and desirable. A "hard" money is desirable (by some) for its *intrinsic* properties. On the other hand, fiat monies are only "demanded" because of distortions in the market such as legal tender laws.