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The Value of Gold: Why Has It Always Been Valuable?

Gold has always been valued around the world. The first documented use of gold coins as money was in Lydia, where they were minted by King Alyattes and his wife, Queen Labarna in 600 BC. Gold also has a long history of use for jewelry and ornaments. The value it holds is so strong that it’s even used as a store of wealth, with most countries in the world using some form of gold standard to maintain its value.

Throughout history and across culture, the value of gold is due to the fact that there are very limited ways to make it. It’s not produced naturally, and only about three-fourths of all gold ever mined has ever been recovered from mines. Gold is also extremely malleable and ductile--it can be drawn into wire or hammered thin enough to be cut into sheets. This means that while gold is currently only used as a store of value, people have been able to create different things out.




Gold's Beginnings

Gold’s origins are still unknown. Some say it was created in the wake of a supernova, while others say it came from colliding neutron stars. Whatever its origins, gold is found in many parts of the world. The two main methods for mining gold involve either extracting it from rock or panning rivers for it.



What Makes a Good Investment?

Gold is one of the most valuable metals in the world, but not all gold investments are created equally.

When choosing a gold investment, there are a few things to consider. First, you may want to buy bullion if you’re looking for liquid assets because it can be sold quickly in order to generate cash. Bullion comes in many forms--bars, coins, or even raw metal that you have refined yourself.

If you’re looking to diversify your portfolio and invest in something with more intrinsic value over time, gold stocks might be better suited for you because they offer ownership in an actual company--not just coins or bars of metal.

There are also some other differences between buying bullion versus buying stocks. With bullion, you get the immediate satisfaction of owning something solid like coins or bars of gold; with stocks, however, you don't own any physical object but rather shares of stock. The price of the stock fluctuates regularly and it may take decades before you see any gains on your investment depending on how well the company does financially.


The Rise of Gold

Gold has been a valuable commodity throughout history, but its importance is on the rise. In the past decade, the price of gold has more than tripled.

In order to understand why gold prices continue to rise, it’s important to look at what is driving demand. As people become more and more aware of how their money is valued and as they lose trust in their government-backed currency, they also invest in gold. Gold can retain value during times of inflation or economic downturn, unlike fiat currencies that often devalue during those periods of time.

This increasing demand for gold alongside lower supply due to production has led to a spike in price. It’s predicted that the price will continue to rise as we see increasing demand and decreasing supply.


Why Do Some Countries Use a Different Currency?

Some countries don't use the same currency as other countries, and this is because of a variety of reasons.

There are two main types of currencies: fiat and commodity. A fiat currency is a currency that's not backed by any tangible good, such as gold or silver. Commodity currencies depend on something tangible to back it up, and this is usually gold or silver.

As the world has evolved and advanced technologically, we've seen more and more countries move away from using commodity currencies. It's becoming increasingly difficult for these countries to maintain their value with the fluctuating price of commodities like gold. In addition, maintaining a commodity-based economy makes it harder to trade with other countries who have different currencies--there can be large fluctuations between the two currencies which make it difficult to determine an accurate exchange rate. These days, many countries use fiat currencies because they're easier to trade with--and because there are no worries about fluctuating prices due to a controlled inflation rate.

Gold is a highly sought-after metal because it's rare and scarce in nature, making it difficult to produce artificially. Not only that, but gold is also very malleable and ductile--it can be drawn into wire or hammered thin enough


Conclusion

Gold has always been valuable. Its monetary value has fluctuated over the centuries, but it has always been recognized as a sign of wealth and prestige.

Gold's value is rooted in two factors: its scarcity and the ease with which it can be traded for goods. Its scarcity is due to the fact that it cannot be created out of thin air like paper currency, and because it doesn't corrode, it is easy to store.

The second factor, ease of trade, is due to the fact that gold can be divided into uniform quantities, unlike other commodities.

Gold has gained popularity in recent years because of fluctuations in the value of paper currency. As long as modern society is dependent on paper currency, gold will continue to be valuable.


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