Why is the value of gold so high?

The value of gold derives from its scarcity as a commodity, as well as from its long history as a stable medium of exchange. The price of gold tends to rise during economic uncertainty and when inflation is high. This duplicity is an exclusive riddle of gold as a commodity. Gold can be something quantitative and tangible, like money, and at the same time it can embody something ephemeral, such as a feeling, even a series of feelings.

To learn more about how to invest in gold, consider downloading our Free Gold IRA guide for further information. Therefore, part of the reason gold has always had value lies in the psychology and nature of human experience. One of the reasons gold still has value is because people have made it valuable. Gold can be considered more valuable than other metals because people perceive it as more valuable. This belief comes from the psychology of human beings and their desire to accumulate wealth, tangible assets and precious metals, among other things.

The gold market narrative has been driven by the contrasting effects of persistently high inflation and rising interest rates by central banks in response. 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. For example, you can buy physical gold, buy gold shares in gold mines, or even buy shares in an ETF (exchange-traded fund) that tracks the price of gold. The World Gold Council, the market development organization for the gold industry, recently opined that the commodity will face two key obstacles.

Gold can stimulate a subjective personal experience, but it can also be objectified if adopted as an exchange system.