Did you ever wonder why gold is so valuable?

By David McClelland

When I was young, the government controlled the price of gold at $32 per ounce and gold backed up the value of our currency. It wasn't until about 1971 that the price of gold was allowed float with the market and today the price is fluctuating between $1,350 and $1,375 per ounce. That is about 43 times the 1971 price.

Gold coins are quite valuable. An example is the American Eagle coin which contains ¼ ounce of gold. The current price of a set of four such coins dated 2004 or 2005 is $4,535. You can buy a set of 20 coins dated 1988 – 2007 for $14,677. Gold coins are considered to be to be a solid investment.

My research revealed that there are several reasons that gold is considered to be the most valuable of all metals. First, it is still considered to be rare. One source stated that all of the gold mined as of 2009 equals 165,000 tons. Scarcity is a strong reason that gold has value. Gold is also difficult and expensive to mine. If you are able to mine gold, you must move about ten tons of rock and earth for each ounce of gold recovered. Second, it doesn't tarnish, corrode or become degradable by other elements. If you make something out of gold, it will maintain its shape. Third, gold can be hammered thinner than tinfoil without cracking. One source stated that gold is valuable simply because so many people believe that it is; i.e., they value it. It is seen as a refuse against tough economic times. Alan Greenspan called gold the currency of last resort.

Brian Bloom put it this way in his "Gold – The Underlying Truth" – "Gold is without doubt the most valuable substance on the planet, if not in all existence. It appears to have the power to lift humanity to a new level in its evolutionary journey. Its linkage with tangible "money" was merely facile – to sow the seed of understanding that it had a value that was beyond comprehension in days gone by."

Why do you consider gold valuable? Are your reasons different from those stated above?