Do you want to know why gold is so valuable and important to us? Read this article to find out!
It’s absolutely obvious that gold is a very expensive material. But do you know why gold is valuable to us and why its cost is so high? People who want to invest in precious metals wonder why it has always been and continues to be the most reliable source of profit?
In fact, there are many reasons why the gold is so valuable, and almost all of them originate from many years ago. Here are some of the most important reasons.
There’s no doubt that rare products and materials have always had a high price. For example, just compare gold and sand. It is obvious that in the first case we need to spend a lot of time and effort on its search, extraction and processing.
At the same time we know that the amount of the product we found is very small, whereas sand can be found anywhere by anyone in unlimited quantities;
A golden colour that shines in the sun gives gold a variety of benefits which have been attracting people for a long time.
Those people who wanted to emphasize their status and richness would use gold to decorate their clothing, accessories, dishes, furniture and other objects to make them look very expensive;
It is a well known fact that pure gold is a very soft material, which can be easily deformed. It makes it easy for jewellers around the world to work with it. Due to its ductility, gold is the most commonly used material for the manufacture of jewellery;
Reliability and durability
A lot of materials out there are easily breakable and vulnerable to corrosion. For example, steel rusts from the sun, the silver turns black while contacting with air, copper has a bad tendency to acquire a green colour, etc.
Only gold doesn’t lose its qualities and remains the bright and shiny metal even over time.
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Gold has been used in many areas of our lives for a long time. For example, in medicine it is still used for manufacture of dental prostheses. Its advantage is that it is completely harmless to humans, because gold doesn’t chemically react with any other substances.
Money. Why is gold valuable - history.
Thanks to the properties of gold listed above many people used it as currency thousands of years ago. Ancient civilizations used gold as a measure of the value of other goods and as an indicator of high social status of its owner.
The more gold the man owned, the more money and respect he got. For a certain (even small) amount of gold you could buy a certain number of cattle, slaves, grain bags, etc.
The fact that the gold is a rare metal and its production is a time-consuming process makes it very expensive. More than half of the world's gold natural reserves are on the territory of South Africa.
There are generally large deposits of the precious metals on its territory. In 1886, the most extensive natural gold reserves in the history of mining were found.
Its value is determined by the yellow glitter that never disappears from the metal’s surface. Gold has different durability, lightness and volume. The two last characteristics don’t affect the purchasing power, which is very high today.
The gold does not deteriorate during transportation, no matter how long it has to stay on the road. Any kind of gold (jewellery or something else) has the same value.
No matter how much time has passed, the price of gold does not become lower, so it’s better to own some gold. You can always change or sell it for the same price any time.
Why gold is more valuable today
Money can depreciate, fade and lose its value. Gold remains the same at all times. Its physical properties stay the same.
The combination of these properties allows gold to be considered as a precious material, which is so highly appreciated around the world.
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