Gold is a valuable resource. Its physical properties make it suitable for use as a medium of exchange. It’s scarce and durable, which allows for versatility in usage. It’s also extremely portable and doesn’t rust or tarnish easily. And lastly, Gold has no other practical use besides being a currency you can use for social status or wealth preservation.
Gold has pioneered the field of currency for over 5000 years and was the only currency accepted by an extensive number of humans. Gold is a rare, valuable commodity that can be used as money. It is one of the few metals that are naturally stable in its crystalline state and find use as a form of currency worldwide. Hard Assets Alliance is one of our favorite investment companies if you are interested. Just check different Hard Assets Alliance reviews to get more information.
The value of Gold is derived from its usefulness as a medium of exchange: what we use Gold for depends on how much we value it. There are several primary reasons why Gold is used as a monetary standard: It’s rare, durable, easily transportable, and possesses no practical industrial use (that can be discovered).
Why Exactly Is Gold So Valuable Today?
1. Gold is Rare
Gold has no known chemical substitute, so it’s rare worldwide. The largest producer of Gold on the planet is China, which produces 500 tons annually. Only one in every 12,000 tons of ore mined becomes an ounce of Gold. The United States mines only 100 tons per year, meaning you would need to dig through 19 miles of earth to get one ounce of Gold, using a shovel roughly the size of a stadium. Gold is so rare that its price fluctuates based on supply and demand. If people worldwide began mining for more Gold tomorrow, its value would decrease significantly – if everyone stopped buying it together, its value would rise significantly.
2. Gold is Durable
Gold is extremely durable. It can withstand heat, freezing, and corrosion. It does not rust or tarnish easily and is resistant to scratches and tarnishing. Gold is a highly malleable metal that can be mined in relatively small amounts, which allows the metal to be easily treated into jewelry, coins, or other shapes. Gold maintains its physical properties when it’s physically worked on in various ways, making it easy to preserve. The human mind associates Gold with strength and value due to all of these attributes. For example, think of how much more expensive diamonds would be if they lost their durability or couldn’t be shaped as easily as Gold.
3. Gold is Easily Transportable
You can easily transport Gold. It cannot be destroyed by fire, extreme hot or cold temperatures, or chemicals. It has a large surface area, so it can be easily shaped and formed into all sorts of shapes with little to no effort. Gold’s ductile nature makes it malleable and easy to shape in various forms, so Gold isn’t limited in the ways other materials are. For example, diamonds are hard to shape and must be cut into specific sizes and shapes for jewelry – which requires much more time and effort than Gold. All of these qualities make it easy to transport Gold, which is necessary for a currency to be used.
4. Gold Possesses No Practical Industrial Use
Gold does not have any other use besides as a currency. Gold’s main value comes from its monetary reliability, so it would not be worth as much if there were better alternatives (for example, diamonds). Gold is very valuable to humans because of the many values people associate with it – it’s so rare and durable (and has no practical use), making it seem like an incredibly valuable commodity worldwide. These values also add to why Gold is so important to humans – they’re all based on how valuable Gold is.
5. Gold is Better Than Other Currencies
Gold is the best currency because it’s portable and durable, like stones or shells, but it has much greater value. Unlike shells, gold does not decay or rust when it comes into contact with air and water. Its large volume makes it possible to be drawn into wire, which is useful for making jewelry. Also, Gold is valuable all over the world, which makes it a viable currency. Other metals and stones can be used as currency in some societies; however, those currencies are typically more valuable than Gold in other countries, which makes them less desirable as a form of global currency.
Gold has been in the world for thousands of years and is still one of the most valuable metals. It has no industrial use, no other practical use except as a currency, and it’s one of the most durable and versatile substances on our planet. Gold is a valuable resource in today’s society because it can be used as money or jewelry and is rare in the world. It is not only as valuable as money but also more valuable than other forms of currency. Gold’s suitability as a monetary standard makes it a valuable commodity in our world.