Why Is Gold Valuable?
Gold has been considered valuable since ancient times. In 5000 BCE, Pharaohs used it as jewelry to symbolize power in Egypt, while pirates fought to steal gold and other treasure from ships. Even today, gold still hasn’t lost its luster, and prices are quite high in the global market.
You might agree that gold is seen as a valuable commodity globally, but you might also wonder why. Why is gold so valuable? If you’re interested to learn why people are so fond of gold, focused on investing in gold, and opening gold IRA accounts, continue reading further.
Scarcity is one of the reasons for gold having a higher value than other metals. It’s only found in the Earth’s crust. According to US Geological Survey, about 50,000 tons of gold reserves are estimated to be left.
They also claim that the Earth has 244,000 tons of gold in total. To put it in perspective, if all of it is collected, it will form a cube 28 meters wide from all sides. As it’s a rare metal throughout the world, it makes it valuable.
Even though gold is scarce, it isn’t the only thing that makes it valuable. Another unique property of gold is its durability. It is one of the few metals which doesn’t react to other chemicals under normal conditions. People have used gold to create jewelry, high-precision electronics, and religious artifacts.
Due to its immense durability, gold doesn’t rust, and neither does it corrode. As it doesn’t wear away over time, it retains its value.
Did you know that during the 1700s, aluminum was considered the most valuable metal, even above gold? This was because aluminum was difficult to extract. However, as newer innovations were made, the extraction became easier, causing the metal to lose its value.
The extraction and refining process of gold are still costly. It requires skill, expensive machinery, and experience to acquire the highest purity gold.
If you’re looking for a reputable precious metal investment dealer to purchase gold, contact Orion Metal Exchange. We are an online precious metal storage company with a good reputation. We can help you decide which precious metal investment choice is best for you. We also offer gold and other precious metal IRA account services.