Gold—Why is it Valuable?

Here at NoCo Gold & Diamond, we sell gold. We will even help you put together a gold party which brings in people from all walks of life who wish to assess the value of their gold, even sell it. It is our stock in trade, an aspect of our business that we’re very proud of.

Have you ever wondered why we sell gold? What makes that precious metal so precious, anyway? Is it really that rare? Is it really that valuable? Yes, gold is pretty—but so is gold paint. Yes, gold makes jewelry beautiful and pleasing to the eye—but so do cheaper metals like aluminum, sometimes.

If you want to understand gold and its value, it’s important to understand gold, its history, its impact on the global economy, and its impact on you.

Gold and History

One reason gold is so valuable is partially because, well, it always has been. It has been an invaluable element of art, especially sculpture and jewelry. It doesn’t tarnish like many other metals; it retains its luster. It is relatively rare and precious. It is described as a precious element in some off the earliest artifacts of human history, especially in Middle Eastern history, the cradle of civilization. The temple of Israel was said to be the ultimate “gold party,” using gold overlays to a point that modern science can’t duplicate the process.

Over time, both science and the economy have come to prize gold. Gold’s unique features include purity (it is an element), malleability (it is a soft metal) and conductivity (it is of great use in electronics).

Gold and the World Economy

One strange fact about economics is that the true value of an object can be extremely subjective. Does anybody, anywhere, really need any gold? If the world were too just up and decide it was valueless, would the world keep on turning? Amazingly, unlike other metals, gold has few real world applications: You can’t make swords out of it. The metal’s too soft to be used in a gun barrel. It’s too soft to be used in building applications (though there are exceptions).

However, it has almost always been used in currency. The “gold standard” was the world standard until about a century ago, and it is still used as a benchmark for world economic health.

Gold and You

So what does gold mean to you? As an individual, gold represents an incredible investment, a commodity. You buy gold; you sell gold; its value rises and falls. You hold a gold party; you examine and analyze the value of jewelry based on its current market value. It is precious to you. It is precious to the world economy. It is precious to history. It is, and always has been, one of the driving forces on planet earth.