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Why gold is valuable

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?

gold

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.

Rarity

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;

Beauty

 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;

Softness

gold

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.

READ ALSO: Gold and silver which is heavier?

Practical application

 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.

valuable gold

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.

gold

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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Newbie
3 comments

I've been studying gold and the gold market since 2003. And in all that time, I have yet to come to a full conclusion of why gold is valued by human beings. But here's what I've got...

The first human being to encounter gold could not have thought, "oh, hey, here's some money". Most likely, gold was a curiosity.

As time passed, the population grew and humans came to need (or want) a way to store their labor and exchange it with others for goods and services. And gold was the natural choice.

Gold is one of only two metals that are colored when pure and not oxidized. Gold is yellow. Copper is brown. All other metals are grey, white, or silver in color. (except bismuth, which is sort of bluish.) But the point is, gold is extremely easy to identify to the naked eye. Of course, we can make many different things gold-colored. But this wasn't the case thousands of years ago.

Gold also does not corrode (rust). For all intents and purposes, gold is permanent – perfect for storing your labor. If humans stored their labor in copper, the metal would eventually rust away to nothing if exposed to nature.

Lastly, gold is available enough (but not too available) to be used as money and associated with wealth.

For these reasons, gold made for the perfect store of labor. We call it a "store of wealth" today or, more commonly, "money".

But gold's "value" doesn't stop there.

Later, gold became associated with illumination and wisdom and used to express veneration of the divine or a divinity. Gold is still used as symbolism in every religion in the world today. Consider Christianity..."the golden rule", "streets made of gold." The best gold symbolism (IMO) comes from medieval alchemy... We were taught that the alchemists were trying to turn lead into gold. But for the most part the method was metaphor. Gold is the representation of the good and pure human soul. The "transmutation" of lead to gold represented the transformation of the self-serving individual to a self-sacrificing individual. So gold's value goes beyond its usefulness as money with an esoteric and philosophical appeal to humans.

Conclusion...

Gold is a form of communication between human beings. Aside from its usefulness as money, gold's value is as a part of the universal language. You can show gold to anyone, anywhere in the world and they will be able to immediately connect it to either wealth or wisdom. This is why I think human beings value gold.

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Newbie
Answered 8 months ago.

It is worthy of comment left previous speaker . That to be honest , until I saw and read the title of the article , I never wondered about why gold is so important and valuable to us . But if you dig into the past, gold was the most reliable currency , paying that bought everything. Just pop in the memory films about kingdoms , where each small bag of gold coins . My opinion about gold is that it really is the most reliable currency, which many centuries will be in the price.

I would like to one day hold in their hands a small bar of gold , and how to have it in your safe deposit box or - I do not even dream . Although , if the dream - my dream may be true )

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Student
Answered 8 months ago.

Three reasons why gold for many so valued by people: beauty, rarity and chemical inertness. If the iron in the nature was as rare as gold, it would be, quite possibly, would be appreciated highly. As you know, gold is a soft metal of yellow color, and one of the heaviest chemical elements. For clarity – the amount of this valuable metal in 200 cm3 has a weight of more than 540 kg. Gold is one of the most tractable metals, and is able to acquire almost any shape – plate, which has an area of 2M2, and consists of only one gram of the precious metal. Gold, unlike other metals (such as silver) was exposed to the damaging effects of air and remains bright and brilliant.

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Newbie
Answered 8 months ago.
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