Warren Buffet said gold has “no utility.” When asked why central banks hold gold bullion, Former Fed Chairman Ben Bernanke simply said, “tradition.”. The thing is, they’re both right. Gold doesn’t produce earnings or dividends, and many banks and investors do hold it for, among other reasons, tradition.
Why of all the chemical elements did gold - an almost completely inert metal with limited industrial uses - come to be valued so highly?
* It's naturally beautiful to most people. * Easier to create jewelry from it. * Reusable. * If you have gold touching your skin all the time like a necklace, a bracelet or a small cross on your neck - it's not unhealthy (unlike other non-preciou...
Why is gold considered so valuable. It is not the rarest metal, it is not the most useful, so why the worship of this yellow metal. Brian Robinson, Brentwood Essex.
Gold will always be king, however, because it is truly the most boring element. Even silver has a tendency to tarnish, so it does have a low level of reactivity, while gold will remain untarnished and unchanged for thousands of years.
Gold has an allure and a price tag, but with no real intrinsic value, why do we consider it so precious and valuable? Explore the answer.
It's the same thing with precious metals -- gold is a very rare element, so it's more valuable than common elements such as iron. Rarity also lets gold work well as a currency. Currencies only function well if they have a relatively stable 'volume' (when economists talk about volume, they mean the total amount in circulation).
It is more valuable than gold because there is a few amount of gold and more dirt. So it is easy to find dirt than it is to find gold. That is why gold is more valuable than dirt.