Why gold has intrinsic value

If you are looking for advice on investing your money in gold, you will find that there are many “experts” who have something to say. Gold has intrinsic value. Its natural beauty, luster, and softness made it a popular choice for early cultures.

Gold as money

Early culture associated gold with rulers and wealthy people, showing its value to human beings. The earliest gold coins were minted in 1500 BC.

Although paper money is regarded the main form of money throughout the world, countries today still issue large amounts of gold, leading to central banks keeping  gold as part of their foreign exchange reserves. 

The appreciation of the value of gold’s has made it a standard of exchange that can be accepted anywhere in the world, and its intrinsic appeal represents a universal attraction for people today and in ancient times. 

Gold as a store of value

Since many people mistakenly follow the proposition that gold and other precious metals are only valuable when society relies on them, it is important to answer the question of the intrinsic value of gold.

Most commodities like oil, grain, etc. have a clear intrinsic value. Although these goods have intrinsic value because people believe in them, their proven utility also increases their value.

When we talk about gold, it derives its intrinsic value from the perspective of people and its effectiveness as a form of money. Gold is a perfect choice for use as a currency because it has several advantageous properties. 

First, its durability ensures that one does not have to worry about problems with rust and decay, ensuring a lasting store of value.

Second, they can be combined and split, unlike other rare things like diamonds.

Third, it’s homogenous, meaning every ounce is the same, unlike other products like grain.

Finally, gold is a rare metal, unlike readily available commodities like grain and oil.  

Can gold become worthless? 

All investments fluctuate over time, which is why people often wonder whether they should buy gold bullion or not. However, gold’s many uses support the conclusion that it always has value.

The price of gold can start off low in the morning, remain flat for the rest of the day and suddenly rise at the end of the day. 

Because gold has so many different uses, supply and demand affect its price daily.

In the last 50 years, scientists have discovered new ways of using gold. It is used in for high-tech applications like satellites, computers and smartphones. It is also used as a chemical component for other things. The utility of gold in various industries has been growing. 

A thing loses value only when it ceases to be used.

That seems like a distant future for gold.

According to investment analysts, gold mining may reach an economically unsustainable point by 2050, however discoveries of new gold veins can push gold mining until 2075.

However, at that time we will focus our resources on recycling the existing gold.

We have already started this process.

For example, smartphones are very short, but we already recycle them.

Progress in this effort will now help us jumpstart our gold reserves so that gold will last longer on earth. 

Can gold be worthless?

Gold will never become worthless.

We need it for so many things. Some of the value of gold lies in the fact that it is used as a raw material in so many applications and it is still used to restore the value of fiat currencies.

The value of this gold rises and falls every day. Investing in the market, every market provides inherent volatility.

You can invest in this precious metal by buying gold bullion bars.

Scarcity of gold also increases its value, and since you know that mined resources will decrease in production by 2050 and likely cease to exist by 2075, you can count on this metal to increase in value. The smart move is to buy it and hold it.