What is Gold?
What is Gold?
You might have come across brands with marketing claims for products with a high price tag because it involves a component known as gold. You might have also heard of this metal used to make jewelry.
But what is gold, and why is it so popular despite its abundance?
Gold is believed to be the least reactive chemical element and a transition metal symbolized by ‘Au’ derived from the Latin term ‘aurum’. In its raw form, it has a color range of reddish-yellow or light orange. It is highly malleable, which means it can be deformed or changed without ruining the metal structure. But why is gold so popular in our world is the real question?
The Secret Behind the Popularity of Gold
Even though gold is found in abundance, it is quite popular, making some people wonder the secret behind its popularity. Some people believe that gold has a value on which our modern economy is created. In short, the money that we use to buy things or sell stuff is stabilized with reserves of gold. It also stands apart from other precious metals because of its aurum color that gleams in the light.
So what makes gold have such an important intrinsic value?
The Value of Gold
History shows us that gold has been used by royalties and by the elite. From golden goblets and plates to have it etched on their robes. The transition metal was exclusive to only a select few members of the society. What makes it so valuable is the belief that it is formed from the collision of two neutron stars that forged gold atoms together. Making gold exist in dust form since the beginning of the solar system approximately 3.9 billion years ago. It is this old enchanting history behind how gold is formulated as well as the luminescent aureate color that makes it so much sort after.
Not to mention that from the ancient Egyptians to the Inca, gold has been used for beautification purposes, to demonstrate wealth, power, and even for healing purposes. When it comes to Egyptians, they used it not only as a currency but also to bury their royalties in gold, believing it to be the flesh of gods.
Gold as a Social Construct
It would be incorrect to say that gold is merely important due to its economic and financial benefits. The chemical element has emerged as a social status symbol, thanks to the ancient era. Gold became popular when it was seen worn by royalties and elites as jewelry pieces, as clothing, or added to headpieces. The metal is used to add a feel of luxuriousness and demonstrate the amount of wealth that a person has regarding how much money they can spend.
For female members, it was often a personal experience to own something made of gold. In many countries, gold is given to brides as a token of love and emotion in the form of jewelry. It is also used in parts of their bridal dresses to make them stand apart and feel special. This is because gold-based items do not deteriorate. After all, it is resistant to most acids. It also does not react with oxygen, which means it will never rust or erode. This is also one reason why it remains so valuable because it is a one-time investment that will last you for a lifetime.
The psychological experience of gold makes a person feel valuable, rich and can achieve anything. It makes them feel stable because gold is such an item, just like Hermes Paris handbags, that its monetary value appreciates in the long run.
This takes us to our next big question, why is gold so expensive?
Why is Gold so Expensive?
By now, you would know that gold embodies wealth and power. Not only is it used to make expensive products, but it also adds an element of bling for which people are willing to pay more, be it cars or Apple’s iPhones. What is interesting to note is that there are other metals much rarer than gold but retail at a lower cost.
Gold is expensive because of its high production costs and versatility. Investing money into gold makes people feel they own a tangible item that is a marker of their wealth. Not to mention the prices of gold appreciate every single day with more demand increasing rapidly. With its beautiful luminescent design and color, people feel emotionally connected to their investment.
Within the United States of America, the 1792 Coinage Act states that Congress had passed a law that fixed the price of gold against the US dollars. Not to mention that mining is gold is a very difficult and complex task. Even if gold is found in abundance, locating a gold mine is the real tough part because it can help geologists, chemists, and mining engineers up to a decade to locate a gold mine. Even if a mine is located, the chances of extracting gold from it are 0.1%. This is because 90% of these sites do not have enough gold to qualify for further development, and hence, they are abandoned.
Our Final Thoughts
So the next time you see gold around you, be it on someone’s finger, handbags, or resting in their ears, you would appreciate the value and status that it brings to its owner. Previously gold was only used for jewelry, clothing, and to stabilize an economy’s currency. But due to its malleable state and as an excellent conductor of electricity, it is used in electronics, cars, architecture, and even in medicine.
However, it may surprise you to know how rare gold is on our planet. The world’s entire above-ground stock of gold only amounts to 190,000 tons, of which 50% is just found in jewelry.
