why is it that gold is worth so much, who was the one in the first place who said its worth money????

Question

Surely a bit of metal is just metal nothing more,

Answer 1

Gold is actually a consumable / commodity.

75% of the gold produced is used in jewellery the rest is for industril application (Circuit board etc)

The recent price hikes have been fuelled by demand for jewellery in the far East mainly India and china, People there now have money to spend and in some cultures it is a traditional wedding gift...... Any way the demand for gold in this part of the world has greatly increased hence the s"supply and demand" scenario.

Quite often the gold used in industrial processes is recycled, but jewellery isn´t, It only retains its sentimental Value and quite often people are buried with it or pass it on to there heirs. So if you bought a €1000,00 bracelet today, you would probably only be able to sell it at scrap prices, as no one wants to buy second jewellery.

But anyway, WHAT about De beers: Diamonds are the most common natural resource on Earth. Yet Why are dimanonds so expensive, Well, De beers, has a monopoly on the diamond trade, if they do not control a diamond mine, they agree to buy all the diamonds, so as to restrict market supply, if all the diamond mines currently in operation were to sell openly, the price of diamonds would crash, probably making them no more expensive than the piece of quartz in your €5,00 argos watch. Hence they have to restrict the supply of diamonds to the market and actually do have incredible stock piles of the stuff, but what is interesting is the fact that the monopolies commision has not seen fit to investigate the diamond trade............. Hope this makes sense,................ and doesn´t sound too much like a conspiracy theory......

remember,,,, Paranoia is having all the facts.

Answer 2

nicely, to some quantity this can nicely be the case, yet frankly that's locally depending. i have lived in various of parts and ought to actual say that there are places the position adult men are seen little more advantageous than a piggy monetary company with the help of the overall public of attractive women people (that's a community variety of social conditioning). In different parts adult men are recognized as people. So generalizing about this isn't all that powerful as i will earnestly say from own experience that there are places the position there's a outfitted in experience that a guy is worth little more advantageous than what's in his wallet at the same time as elsewhere this is different. easily to some quantity some adult men discover that their absolutely skill to entice the girls people they prefer with the help of distinctive feature of their money, in spite of the indisputable fact that this is in many situations a matter of in simple terms the region the position the guy is residing the position the superiority of real gold diggers is so intense and reflects an perfect variety of behaviour that in many situations impacts this variety of behaviour on the component to ladies. this can be a particularly present day phenomenon that wasn't customary one or 20 years in the past contained in the West.

Answer 3

Hello,

I think you will find that the very first peoples to reconise that gold was a special sunstance were the Aztecs, the Incas and the Pharoes. So gold was know as special several thousand years ago (re: Tutankarmans funeral mask).

*Gold is a metal that does have special qualities, in that its a fairly pure substance bye itself.

*that gold can be shaped and melted & reshaped yet doesnt appear to loose its brightness & high yellow sheen.

*Gold is one of the few precious metals that holds its price across the world, especially in times of war, chaos & crisis.

**Governments & Banks across the world hold vast wealth and its all held in gold reservers (all in gold bars).

**Gold doesnt rust or erode or deteriorate over time like other metals say iron for example. This is another factor in golds value as a financial substance.

IR

Answer 4

It is a form of money.
Because Gold is a rare metal, it has been used for coins & to represent wealth.
All money is basically a system of barter.
You create something by your work.
Someone else wants it.
Before there was money, people would trade services, but not everyone needed the same services.
So rather than John building Freds house in exchange for Fred plowing John's fields for 5 years; Fred gives John an IOU (money/barter chit) that says I owe you 5 years field plowing.
John then trades 1 year of that to Tom for new furniture, 1 year to Mike for digging his well, etc.
It is simply a means of handling the exchange of labor/value.
And since people like gold, they accepted it as a tool of barter.

Answer 5

Paper money is just paper too.

Actually I read a book about money as a kid.

Vouchers / Receipts were given by Jewellers in exchange for safely looking after customers gold and valuables.

As a convenience, a few people started to swop their vouchers (which were effectively the right to collect the gold from the jeweller), with other people in exchange for property and other goods.

The Governments cottoned on to this fact, this gold receipt "promise to pay", and how paper money was born. The gold standard helped to bring confidence in "paper" for the first time ever... which would have been laughable in previous generations, the idea of paper as money.

Anyway that doesn't answer your question about gold.... but gold though has been valued in many civilisations... prior to anyone knowing about its purity value. Like you say its just metal.. but has been accepted as a store of value in many countries... and its attractive and men lust to possess it, and women like to adorn it.

Answer 6

Anything that is rare will be worth a lot. Look at the rare, priceless paintings and sculptures by famous artists.

In the old days, salt was hard to get for landlock countries, so it was worth its weight in gold. Now that transportation is cheap and salt isn't so "rare" anymore, its price has gone down.

Answer 7

Gold is one of the few metallic elements that doesnt tarnish
It is rare
It is aesthetically pleasing
It is relatively soft and malleable.
In ancient times , all these features would give it its value,many of which are still desired for the same reason

Answer 8

originally gold was valued because of its corrosion proof and attractive qualities, thats why old eating utensils had gold content and jewelry was made from it. Nowadays there is a limited availability and countries set their currency against it as a bench mark. It is in no ones interest to flood the market with gold as the price would nose-dive.

Answer 9

Supply and demand.
Humans were crazy enought o think it is special and are now brainwashed with it. I have one piece of gold and that is my wedding ring. It is special to me for a very different reason. But then I am a bit of a tomboy.

Answer 10

gold is worth alot because it does not corrode (go green) in any weather or anything. its lasts forever unlike some other metals. thats why silver is worth alot as well