It is used as a holding of sovereign wealth. The only thing that truly gives value to gold is the fact that almost every country has its own sovereign possession of gold. In fact, the United States currently has around 4,500 metric tons of gold in its reserves. Gold is essentially used to back up a currency.
Gold is the metal we'll turn to when other forms of currency don't work, which means that gold will always have value in difficult and good times. In the United States, President Franklin Delano Roosevelt instituted a series of measures to prevent gold hoarding, such as forcing banks to hand over all their gold holds to the Federal Reserve, not allowing them to exchange dollars for gold, and also prohibiting any export of gold. Going back a bit to 1848, a man named John Marshall found gold flakes in a California stream, thus starting the California Gold Rush. Gold doesn't corrode, providing a sustainable store of value, and humans are physically and emotionally attracted to it.
At various points in history, gold coins were minted, however, many coins were not minted by any central authority, but were simply minted by ordinary people. The inability of governments to inflate the value of money because it is linked to the supply of gold makes it difficult for inflation to increase significantly, while a globally accepted gold standard sets exchange rates and reduces economic uncertainty. Most would agree that gold has always had value, for all these reasons, as a component of decorative jewelry, a currency at one time and as an investment. This is because as the productive capacity of an economy grows, so does its money supply, but since the money supply is limited by the amount of gold an economy has at any given time, the capacity of an economy to produce more and grow is also limited.
Most likely, people have discovered gold for the first time in streams and rivers around the world, with its striking beauty and brilliance. Gold is used in increasingly varied and innovative ways and continues to help shape the world around us. As mentioned earlier, this led many countries to finally abandon the gold standard entirely and never look back. Gold can exist as something quantitative and tangible and, at the same time, embody the qualitative and the ephemeral.
Silver and gold are beautiful metals that are easy to turn into jewelry, and both precious metals have their own devotees in fine jewelry circles. The well-known history of gold goes back a long time, so much so that, according to the National Mining Association, it was first used by the cultures of present-day Eastern Europe in 4000 BC. C. to make decorative objects.
All that said, this series of blog posts on gold will seek to explain why it is such a precious metal, making a story, discussing its properties, the extraction and production process, the uses of gold, the main gold-producing countries and, finally, explaining its role as a traded commodity. Perhaps the physical quality of gold of absorbing light causes its special brilliance to literally come from within.