In terms of economic fundamentals, gold is the most apparent choice for a medium of exchange for goods and services. The metal is plentiful enough to be employed in the production of coins, but it is also rare enough that not everyone can create them. Because gold does not tarnish, it is a long-term store of value, and humans are drawn to it on both a physical and emotional level. Gold has been valued by communities and economies throughout history, guaranteeing that it will continue to be valuable in the future. Gold is the metal to which mankind will resort when other forms of currency fail, implying that it will always be useful in both good and bad times.
As part of our endeavour to explain why gold is such a desirable precious metal, we included a radical rationalisation of the history of gold and the gold standard, as well as a debate on the viability of the present gold trend, in element one of this collection. We may supplement our explanation of why gold is special by describing how it is typically mined and processed, as well as highlighting how gold’s unique physical features make it one of the most useful metals. Gold has also been and will continue to be used as money for thousands of years. Gold, on the other hand, has become precious not just because it is beautiful and expensive, but also because it is incredibly useful. It is used in a variety of applications, including art, industry, electronics, dentistry, and medical.
The fact that gold is both beautiful and expensive isn’t the only reason it is so valuable. It is used in a variety of sectors, including electronics and dentistry. Scientists in the field of detection have developed a method to identify fingerprints on materials such as plastic or leather using gold.
What Makes Gold So Expensive?
Most people would agree that gold has always had value for all of these reasons: as a decorative component of jewellery, as a temporary reserve currency, and as an investment asset. However, in addition to these physical benefits, we would like to highlight another feature of gold that, while more difficult to explain, is as real: its mystery, which is a tough to quantify characteristic. The mystery behind gold’s attraction contributes significantly to its attractiveness. Its duplicity is a source of contention because it is unique to gold as a commodity.
Despite the fact that gold may symbolise something quantitative and substantial, such as money, it can also represent something intangible and transient, such as an emotion or even a range of experiences. In this sense, psychology and the nature of human experience play a role in explaining why gold has always had monetary value. Our predecessors were tasked with inventing a trading mechanism that would be easier to implement than the barter system. A coin is an example of this sort of medium of exchange. Gold is the most cost-effective metal to utilise among the elements in the periodic table. We can rule out elements other than metals since money that is either gaseous or liquid is impractical for individual movement. The only metals remaining are iron, copper, lead, silver, gold, palladium, platinum, and aluminium.
Some of the most common metals include iron, lead, copper, and aluminium. These metals corrode over time, making them a poor investment for long-term storage, which is required for coinage. Furthermore, keeping the metals from corroding is a time-consuming procedure. Aluminium has a light and unsubstantial feel to it, which is unsuitable for a coin metal designed to evoke feelings of security and worth.
The dubbed “Noble Metals.” Platinum and palladium are feasible coinage options since they are typically non-reactive to other elements (i.e., they cause no corrosion), but they are too rare to be created in sufficient numbers to be used in circulation. Metal must be both slightly rare (so that it is not produced by everyone) and easily available (so that a sufficient quantity of coins for commerce may be manufactured). Although silver may be polished and textured in a number of ways to catch the light and the eye, no metal rivals gold in terms of brightness. Unlike other elements, gold has a delicate rainbow of distinct and exquisite colours that are unique to it. Because gold is a heavier metal, its atoms are significantly heavier than those of silver and other metals. Because of this property, electrons travel more quickly, allowing for some of the light to be absorbed into the gold—a process made feasible by Einstein’s theory of relativity.
Gold may not be utilised immediately in the event of a collapse of the modern paper-money economy, as panic sets in and people fight for their basic needs, but it will be used eventually. To varied degrees, our desire for human contact trumps our desire for complete independence. It is considerably easier to work together than it is to attempt to survive off the land on our own. This human trait leads us to find ways to collaborate, which compels us to devise easy and effective methods of exchanging goods and services.
A lump of gold may have no immediate physical worth to the person holding it; they may, for example, be unable to eat or drink it. However, if society as a whole chooses to convert gold into coins and use them as a medium of exchange for commodities, then that currency will immediately acquire value. Gold is the most volatile asset in this transaction. If a crisis arises and paper money and the system that supports it become unavailable, we will go to gold as the last option. Gold is maybe one of the only substances in the world that contains all of the required properties for the job, including the ability to survive endlessly.