Why is Gold so Valuable?

What is Gold Used for?

Gold has many industrial uses, including in the manufacture of electronics, cars, and airplanes. The majority of the gold produced around the world each year (around 80%) is used in jewellery, either as a decorative accessory or for its perceived healing qualities. Beyond industrial uses, gold has been used as a form of currency and investment asset for centuries. This is because it is extremely rare, and therefore not subject to the same fluctuations that other investments are. Additionally, gold can be melted down and re-used, making it a very environmentally friendly choice.

Why is Gold so Valuable?

The value of gold can be traced back to its scarcity. The element is extremely rare, meaning it is not likely that we will ever see a gold-driven economy. There is approximately $7.5 trillion worth of gold on the planet, which is a minuscule amount compared to the worth of other investments. Because gold is so rare, it is not only highly sought after as an investment asset but also as an industrial resource. In fact, only around 2% of the gold extracted from the ground each year is used for investment purposes. The remainder is used in a wide range of industrial applications.

The Scarcity of Gold

Beyond its aesthetic appeal, gold is also a highly durable metal with anti-corrosive properties. It is also extremely difficult to mine, requiring miners to dig 16 levels below the surface in order to extract it. This makes the metal extremely difficult to produce, and therefore highly valuable. Gold is also chemically inert, and therefore cannot be broken down or oxidized. This means that it has a longer lifespan than other industrial metals, and can be used in jewellery not just for one lifetime but for many.

Its Durability and Resistance to Corrosion

Another reason why gold is so valuable is its resistance to corrosion. The element can be exposed to both water and air without oxidizing, and therefore does not rust or break down. These properties make gold extremely valuable for investors who are looking for a safe investment that cannot be devalued.

Historical Worth and Investment Demand

Gold has always been a desirable asset, and this dates all the way back to ancient civilizations in the Middle East. The first recorded use of gold as an investment asset was in Babylon, where it was used to fund government projects. The element has been used in this way ever since, and is one of the most valuable and stable commodities on the planet. Because gold has been used as an investment asset for centuries, there is an established historical price. This makes it easy to predict future value and therefore easier to include in an investment portfolio.

Options to Purchase Gold: Coins, Bullion, and ETFs

Gold coins are one of the most popular methods of investing in gold, and there are many different types you can choose from. It is a good idea to invest in different types of coins because each has its own specific price. Therefore, if one type of coin drops in value, you will make back the money you spent by investing in another type of coin that is still worth a lot. There are two main types of bullion that you can purchase in order to invest in gold, bars and coins. While both offer the same return, coins are more valuable because you can sell them back to the dealer if you ever need to. You can also invest in gold-backed ETFs that invest in gold mines and gold futures. These are a good option if you want to invest a small amount of money, as they often require a minimum initial investment of $1,000-$5,000.

Conclusion

When it comes to investing, there are plenty of options out there. However, when you’re looking for something that will stand the test of time, you might want to consider investing in gold. Gold is a metal that has been used as a form of currency and an investment asset for centuries. It is also one of the rarest elements on the planet, with miners having to dig as deep as 16 levels underground in order to find it. This makes it not only a great long-term investment but also an excellent hedge against inflation and economic downturns. When it comes to investing, there are plenty of options out there. However, when you’re looking for something that will stand the test of time, you might want to consider investing in gold.