Gold has always been important for ages. The grandeur and power presented by gold were something that everyone yearned for. But why is gold valuable? What are the properties that make it so authentic and a trusted metal for ages? Have you ever thought about whether will gold ever lose its value? These are some of the questions that we are going to address in this article.
1. What is Special about Gold?By author Jingming Pan on Unsplash
Gold is one of those metals which has been used by humanity for ages and there are good reasons why is gold valuable and what is so special about gold. From ancient civilizations to the present times, gold has held an important value in the lives of people all around. Its properties allow it to be made into beautiful jewelry which is adorned by people. It was also used as currency for hundreds of years because of its authenticity. One of the special properties of Gold is that it has pure shine in it. It is a pure and useful metal.
Although it is costly, people have not stopped using it because of its authentic value. This metal is used by people for many purposes. It does not react to anything and does not get affected by any external stimuli. This means that gold is a very stable metal and does not pose any risk. It is one of the softest metals, one of the most ductile and malleable. It can easily be converted into thin wires and sheets because of its malleability. This metal is also a good conductor of electricity and heat. Gold is the only non-white colored metal apart from copper and cesium. (See What are Rubies made of?)
2. Why do You need Gold?
Gold has a rich history in the world. It is deeply rooted in cultures and civilizations across the world. It is one of the most important commodities. It is considered one of the most valuable metals. It is pure and authentic and does not lose its value. It holds the same spot of importance today as it did centuries ago. Gold has its worth perpetuated because societies have always placed a high value on gold. Gold is one of the safest metals as it does not react to any environmental stimuli and remains stable. It doesn’t corrode as well.
Why is gold valuable? Gold is a valuable metal and this can be noted by the fact that gold has been an excellent hedge against inflation. It never loses its value. In fact, it becomes more precious during inflation when the cost-of-living increases. In any event of uncertainty, be it deflation or geopolitical uncertainty, gold has always become more valuable and its price tends to rise. Gold outperforms other investments during times of global crises. Gold is never out of demand. It has always been in demand and the economies and cultures around the world support this demand.
Hence, gold, in any form, is very precious and always comes to the rescue in times of difficulty. Check out What does Fool’s Gold look like?
3. Why is Gold Valuable?
Take a look at the following properties to know why is gold valuable:
- Gold is highly valuable because it does not corrode.
- It remains pure throughout and can be easily melted to turn into something else.
- It can always be used as a currency.
- This metal never loses its purity and shine. It is a very soft metal. Hence, it is a great metal for making jewelry. Gold is one of the most authentic metals which remains the same throughout.
- It is a non-reactive metal and does not get destroyed while coming in contact with any environmental factor.
- It has never lost its value even when the world faces a crisis. This makes gold a very safe and valuable metal.
- It is used in multiple fields like medicine, dentistry, art, and industry.
For ages, gold has been used as a symbol of power and prosperity by the ones who owned it. Gold is not a readily and easily available metal, which is also a reason why it is considered valuable. (See How are Minerals distributed in North America?)
4. Why was Gold Valuable in Ancient Times?By author Color Crescent on Unsplash
Ever wondered why is gold valuable and more specifically, why was gold valuable in ancient times? Gold has been used as a symbol of power and prosperity for many ages and even now it is used. It is a metal that does not get rusted. Hence, it never gets destroyed. It is a non-reactive metal and a stable metal. In ancient times, gold was used to make buildings and palaces of rich kings. Their ornaments, products of daily use, garments, coinage, sculptures, and many other things were made out of gold.
Gold was used as a currency in ancient times because it was the most authentic metal. It does not react with any other metal, hence making it a safe choice to be used. Gold served as a status symbol. It is a malleable metal that can take any form. That’s why it was used and incorporated into multiple things. (See Which is the Strongest Rock in the World? )
5. Why is Gold Worth more than Silver?
Why is gold valuable more than silver? Gold is worth more than silver because of its scarcity. Silver is more readily available and gold is rare. Gold is a stable metal and does not react with anything which makes it one of the highly trusted metals. Gold is also used as a currency and it always remains in higher demand than silver. The chemical properties of gold make it a very unique metal. For ages, gold has been a symbol of power. It was used as a mark of prosperity. Many things were made out of gold in earlier times, like jewelry, vessels, sculptures, garments, etc. Must see How can You identify Silver Ore?
6. Will Gold ever lose its Value?
Do you think, will gold ever lose its value, and if not, why is gold valuable? At this point, we are going to talk about this question. Gold will never lose its value. It will always remain valuable. It is a precious metal that is not easily available. Gold is a non-reactive metal and hence, stays the same throughout. This is an important metal that has always been a part of humanity.
Gold is considered auspicious by many cultures around the world. Since gold does not react like other metals, it always remains stable and there is no chance for it to get corroded or destroyed by environmental factors. Only in hypothetical situations, the gold can lose its value because, in reality, this is probably not going to happen. (See How to Identify Kimberlite?)
7. Why are Humans Attracted to Gold?
Humans are attracted to gold. So, why is gold valuable? It has been one of the most valuable and precious metals for ages. It is used as a mark of power and prosperity. The shine and luster of gold are something that no other metal has. The malleability of gold is such that it can be converted into any form easily. It has numerous uses. It has been used in making jewelry, vessels, sculptures, coinage, garments, and other products. The value of gold has always been high because of its properties and scarcity.
Gold is not readily available which makes it a highly valuable thing. Gold has the status of being pure and authentic and anything made out of gold is highly appreciated. Humans have always been fascinated by gold, and gold is not going to lose its precious identity even in the future. Gold was, is, and will always remain valuable and humans are always likely to be attracted to gold. (See Why do people love gold?)
8. Is Diamond Rarer than Gold?
Diamonds are much more expensive compared to gold. They are very rarely found which makes them rare. Since they are scarce, they are also more highly-priced than gold. Diamonds are made of carbon. The natural processes that take place for the formation of carbon are much rarer and more important than the chemical substances with which it is made. Although they are made up of just carbon, they cannot be artificially produced. But if you look at the elemental form, gold is more valuable than diamond and is also significantly rarer.
Gold is a heavy metal in comparison to carbon which is only made up of carbon, which is highly pressurized. Diamonds are rare because they are buried deep inside the earth and their extraction is a great problem, although they are available more than gold. When we look at gold, it is a metal that cannot be artificially produced ever. The gold that is found on the earth is the only limited source. Gold was formed during the formation of the earth when the heaviest elements gravitated towards the earth’s core. Hence, gold is rarer than a diamond in terms of elemental value. (See What is the Most Expensive Rock in the World?)
9. Who First used Gold as Money?
Gold was first used as money by the King Croesus of Lydia. Lydia was a part of present-day Turkey. This was the time around 600 BC. The king of Lydia was the first person to use gold as money and they circulated the gold as money in many countries much before the paper currency was introduced. Gold was a symbol of purity and authenticity. It never lost its value and was a perfect metal to be used as a currency. Gold is a non-reactive metal that remains highly stable. It was in great use in ancient times and was used as a coin. (Also read What are Characteristics of Good Money?)
10. Why Gold is so Cheap in Dubai?By author Vaibhav Nagare on Unsplash
Gold is so cheap in Dubai because of the tax exclusion. Dubai follows a zero-tax regime in gold imports which significantly reduces the price of gold. The gold in Dubai is almost 15% cheaper than in India.
11. Why did Egypt have so much Gold?
Egypt had so much gold and most of the ancient things found there were made up of gold. According to researchers, this gold came from the mines situated along the Nile River. The Nile River was known to carry gold throughout and most of the gold was collected through it. Egypt was rich in mineral resources including gold. Since ancient times, gold was readily available there. The location and resources present in Egypt contributed to a large amount of gold. The land had rich gold resources that were used by the people in ancient times.
So, now you know why gold holds such important value in cultures around the world. The purity and authenticity of this beautiful metal are something that everyone wants. Through this article, we have got clear answers to why is gold valuable and what is so special about gold. I hope this article was informative and it helped you to some extent. Must read about the 14 Factors That Affect The Price of Gold.