Gold, one of the most precious metals in the whole world, has both value and price coexisted in one. It has got a long enough history without being dumped out of process. Yellow glittering appearance, heavy feeling on your hand, all announce the charm of gold in an unobstructed view. Back in ancient times, gold is the representative of royal family, especially the emperor. And the color of gold, yellow became the esteemed color only used by the emperor. Otherwise, gold was the currency in circulation along with silver. As time goes by, gold has never lost its shade. Contemporary, it is still the very incarnation of wealth. However, the price of gold does turn off some customers from purchasing it. Now, let’s have further insights about why is gold so expensive?
Why Is Gold So Expensive? The Value!
Before we jump into this question rashly and talk a lot about how great the value it beheld, I want to drop a question, which is, why gold has value in itself?
In one hand, gold is valued is because that it is so chemical uninteresting, which means it will not easily be corroded. Therefore, it is easy to restore without losing even a slight portion of it. It reflects our permanent attitude towards value, that the everlasting thing is always precious.
On the other hand, gold is so rare among all the metals. When a thing is scarce, it is precious for sure. The content of gold in the Earth’s crust is much more less than other metal element. So the mining of gold is destined a difficult and time-consuming thing.
These characteristics gold has build the foundation of its price. Price and value are generally proportional to each other. That would be the every original reason why gold is so expensive.
Why Is Gold So Expensive? The History!
Dated back to the long history of gold in the past thousands of years, the transform of gold’s role played has evolving from time to time. At the very first beginning, gold is merely used in building decorative objects, such as jewelries. It was until 1500 B.C. gold was made the first official medium of exchange for international trade. It got its form of gold ingot, gold bullion and broken gold. Little by little, it became the currency in circulation accepted by anywhere in the world in more than 6,000 years. The long history makes its weigh to the expensive situation in gold, I think.
To cut in the long history, gold certainly has some glorious moments to be praised by investors. For example, the most convincing reason why investors keep engaged in gold investment is because gold is the safe heaven asset. During some miserable events, such as financial crisis, inflation and deflation, gold can always be the last retreat for investors to seek condolence. And this rule is not merely adapted to individual, but also to the whole country. That is the reason why every central bank always has large amount of gold restored.
The history tells us successor, gold will still be of vital importance in the development of human history and trading. That makes it a common sense that gold is so expensive for some historical reasons.
Why Gold Is So Expensive? The Society!
As gold is evolving with the society, it must have something to do with the social features. Back to ancient times, when gold was used as the metal to build decorative objects, it was out of the need. People at that time want to wear something pretty and easy to be made, gold was the perfect choice for it is easy to be melted down.
With the society requires more and more, gold turns itself gradually into a symbol of social status. Back in ancient times, even the color of gold is used specifically by royal families. Even in today, we still base this in our mind that gold is for riches.
All in all, gold’s value is ultimately a social construction: it is valuable because we all agree it has been and will be in the future.
We all have strong attachment toward gold physically and emotionally. Societies and economies have been keeping place value on gold, thus perpetuating its worth. What’s more, gold would still be available when other currencies lose their value and cannot function any more. Therefore, considering from a past vision, current vision and future vision, gold is so expensive for reasons mentioned above.