Why is Gold so Expensive?
Throughout the history of mankind, gold has had an allure, well beyond any other precious metal. And not just because of its beauty. There are literally hundreds of reasons why gold is more valuable than other metals and it is not just because it looks spectacular. Here are some of the reasons why gold is more expensive.
Gold is Rare
Considering the demand for gold, it is extremely rare. We need it for so many reasons: jewellery, electronics, investments, photography and much more.
Gold Holds Value for Everyone
You likely haven’t met someone who didn’t want gold. Literally, everyone in the world wants gold. Humanity appreciates its look and how it holds its value.
Gold is Needed to Produce Practical Things
Do you own a smartphone, tablet, camera or gold jewellery? Even if you go to the dentist you benefit from gold. Although it has considerable production for jewellery and investments, it has a limitless number of other uses beyond this.
Gold is (Practically) Indestructible
If you don’t have a nuclear reaction, gold is fairly difficult to destroy. It can also be melted easier than other precious metals, and converted to other formats, whether they are coins, bars or jewellery.
Gold is Portable
Yet another benefit to gold is that you can easily transport this highly valued investment wherever you go. Investments in properties and cars aren’t nearly as convenient. A gold coin can be simply placed in a pocket, and wealth can be discreetly transferred from one location to another without prying eyes.
Gold Has Always Had Value and Will Always Hold Value
There has never been a moment in time when gold was worthless. Its value spans generations, countries, economies and borders, while often only increasing in its value.
It’s a Different Colour
There is only one bright yellow and shiny precious metal and that is gold. All other precious metals are white-grey but gold is the one that stands out.
There is A Limited Amount of Gold
We can’t produce more gold. What’s in the ground and in our possession is all that ever was and all that ever will be. Knowing that there is a finite supply makes it even more valued.
Production is Challenging
Some things in life are easy. Gold production is not as easy. First, the gold needs to be found, which can take many years of research and expensive geological equipment. Then the extraction needs to take place, which could involve tunnels or open-pit mining. The gold is then taken to refineries where the gold is purified. Then it’s minted. Finally, the gold needs to be distributed and sold to businesses or investors. The process is complex, costly and on a large scale requires massive resources.
Gold is Expensive Because We Want and Need It
Ultimately, gold is the price it is because our society demands it. People want to wear gold jewellery, we need it in our digital devices, we want to increase our investments and we love how it looks.
If you want to increase your holdings in gold and join the many Canadians who are just now starting to realize the benefits of gold, check out our gold coins and gold bars ready to ship out today.