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Why Is Gold So Highly Valued

George Sterling | Tuesday, January 15th, 2013

Gold throughout its history has been regarded as a special metal. It has always retained its value because of many attributes attached with it. Gold is extremely malleable. You do not need to provide any heat to it in order to shape it into anything you want. For this very reason, it has always been used in jewelry. Because of its beautiful physical form, the shine and luster has made it quite attractive to the human eye.

For thousands of years man has fought over gold and even died for. This is not only just due to its appearance, but also because of the fact that gold became the currency for many of the societies of the world. People used gold as a primary currency to trade.


Gold price and its value amongst men increased when people began to rely on electricity. Gold happens to be a great conductor of electricity and it does not corrode. The metal itself is not used in wiring, but it has many other purposes in the electronics industry. Most cell phones, computers and other electronic devices contain at least some amount of gold in them to ensure that the product is fully functional. This significantly boosts the value of gold due to its regular use in the industry. The demand goes high and with limited supply of gold, the price naturally increases.

Since 2008, the price and value of gold has significantly increased. This isn’t due to demand from the electronics industry, but in fact it is due to the fact that gold serves as the only hedge against inflation of paper currency.

Due to the recent economic crisis, governments around the world have printed more and more money. Even the United States government has multiplied paper currency many times in the past few years. Multiplying the money increases the wealth but the value of individual currency note loses its value. But compared to paper currency, gold does not lose value; this is why gold is always worth more in terms of value.

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