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| Why is gold considered so valuable? |
Some
contributing factors might be that gold does not tarnish, rust or deteriorate
in any way, but remains shiny and golden at all times. It keeps its value even
when the economy is taking a dive. Gold
remains steadfast and true relative to the value of other goods and services. In
fact, the decline in confidence in world currencies contributes in no small way
to the continued popularity of gold. With the advent of the internet, the
transfer of funds by the use of gold has now become big business and millions
of dollars worth of gold is moved around the planet literally at the speed of
light and Asia, of course, never did lose its focus on the value of gold both
economically and culturally.
The European
exploration of the Americas was fuelled in no small part by reports of the gold
ornaments displayed in great profusion by Native American peoples, including
Central America, Peru, and Colombia. The desire for gold was so strong that
ships flooded to the Americas in search of this wondrous metal.
Gold is not
the most expensive of the metals. Platinum being traditionally of higher value.
But although the price of some platinum group metals can be much higher, gold
has long been considered the most desirable of precious metals, and its value
has been used as the standard for many currencies in history. Gold has been
used as a symbol for purity, value, royalty, and particularly roles that combine
these properties.
Although the gold
futures price you see in the media continues to go up and down like a roller coaster, gold is still considered highly
valuable. Asia, collectively, is the
biggest buyer and holder of gold on the planet, followed closely by Russia and South
America. The vast majority of people on
the planet think that gold is worth keeping and favor it over paper currency.
Some people
consider gold is valuable due to its rarity.
However there are many other elements and substances rarer than gold but
which do not have the same level of desirability. Diamonds for example, Platinum and some of
the rare earth elements are more rare than gold. Its malleability is another reason but there
are also other materials equally as malleable if not more so.
Philosophically
it was once said that when gold was created the gods put desire into it so that
man would always desire it. Perhaps
there is a lot to be said for that theory, as whimsical as it may be.
Perhaps it
is a cultural thing. In Africa gold was
not considered particularly important to the indigenous tribes until conquerors
from the west came and expressed their ardent desire to own the metal thus
giving it value. On the other hand, in the Americas, gold has always traditionally been held in high esteem.
Gold is very
versatile. It does not tarnish, is impervious
to most other elements and can be moulded and worked into an almost infinite variety
of shapes.
Perhaps it is a combination of all these
things and others.
Thomas More,
the renowned English author, poking fun at gold as a symbol of wealth and
riches in his novel Utopia and, by implication acknowledged it. On the imaginary island
of Utopia gold was so abundant that it was used to make chains for slaves, tableware
and lavatory-seats. When ambassadors from other countries arrive, dressed in
ostentatious gold jewels and badges, the Utopians laughingly mistook them for
servants and addressed those in the party who were NOT so lavishly adorned.
Despite
Thomas More’s jocular reference, gold has held its own in any society through the
ages and continues to do so as evidenced by the continual accumulation by many nations
and peoples. Gold will continue to be
considered highly valuable by the vast majority of people on this planet
regardless of any temporary short sighted price manipulation of the gold price.
References:
en.wikipedia.org/wiki/Gold
