Gold: Why Is It So Valuable?
Why Gold is So Valuable
Gold is one of the most valuable metals in the world, and for good reason. It has been used as currency for centuries, it can be found all over the earth, and it doesn’t corrode or tarnish like some other metals do. Price of gold is always high. But what exactly is gold? Where does it come from? And why are we so obsessed with using this metal to make jewelry, coins and artwork?
Many people think that you can only find gold nuggets at a mining site somewhere on Earth. In reality though these areas just produce a small percentage of mined supply around 98% comes from recycled scrap (in 2012). Gold production annually is about 165 million troy ounces which equates to roughly 2000 pounds per person living on Earth today.
This metal is so valuable because it has been used consistently as a form of currency since the time before Christ. Gold coins were first minted in Lydia, an ancient country located on the west coast of modern-day Turkey. The introduction and spread was helped by Alexander the Great who conquered most of Asia Minor (modern day Turkey) after his victory against King Darius III at Issus in 333 BC.
Anytime there is a crisis like during World War II when all other metals are scarce or can’t be exported easily people start looking for gold which provides stability to local economies especially if they have limited access to foreign currencies or goods that will allow them to trade for things their society needs such as food. This type of scarcity almost always leads to a spike in the price of gold.
What makes these sharp rises even more dramatic is how easy it can be to buy gold. A lot of people are buying and selling small amounts today using apps which makes trading in the metal easier than ever before, even for those who don’t have a ton of money or large sums to invest.
Gold is so valuable because it has been used as currency throughout history and its production doesn’t require an excessive amount of resources – making this precious metal truly sustainable; something we can continue to use without fear that we’ll run out anytime soon.