Why is gold worth so much?
What is the reason, does it make sense that metal has become currency? And, above all, we must consider that it is not the rarest or most difficult metal to extract from the Earth.
For experts, betting on gold and silver investments is a smart move. This is because, unlike many goods, the value of precious metals is fixed and is not determined by external factors beyond supply and demand. Without this greatly affecting its established price.
Gold has multiple uses, one of the main being that of jewelry, but it also has applications in medicine, electronics, medicine, and even aerospace engineering.
Unlike other "goods", gold has a value from its own existence just like diamonds or silver. For example, if we invest in dollars or shares of a company, inflation and other circumstances that we cannot easily predict can affect its value.
In the case of valuable minerals, it is usually the rarity that determines whether their value is high or not. Gold is "rare" because it is not plentiful, although it is also not close to completion. According to USCB Science, gold has particularities that have made it a perfect investment metal.
Added to the multiple uses, its physical and chemical properties stand out for being malleable, a great conductor of electricity, and also does not rust. A very important factor, because if gold bars or bars are made, or coins will not be affected over the years.
In economic terms, the value of gold was not assigned at first by the characteristics of a metal that surely was not known to have a certain type of nature.
At the beginning it was the peculiarity of its color that gave it its initial value, nowadays it is the society that gives it value due to issues related to what we mentioned before, plus the cost that its extraction generates.
Year after year the amount of gold (which was mined) in the world increases. Of course, not much as it is complicated to get from the Earth and not necessarily abundant. Thanks to that, it is "worth a lot", although the last factor would be that, if nobody were interested in owning or investing in gold, we would surely see a dramatic decrease in its value. Nor is it the rarest metal on the planet.