Gold is viewed as one of the world’s most valuable commodities for many reasons, but ultimately the most important reason is that gold is one of the most recognizable and accepted “stores of value” in the world and has been since gold was first mined by the Egyptians 5000 years ago.
A store of value is something that can be saved and retrieved at a later date for predictable usefulness. Some stores of value over the years have included other precious metals such as silver and platinum, gems, real estate, art, antiques and even livestock in some cultures. But gold has long been the most desirable store of value and that is why it has been the basis for many currencies over the years.
There are some intrinsic qualities of gold that make it valuable as well. For instance, gold is rare. If gold were found in abundance, and everyone could get their hands on it in large quantities, then it would fail to meet the “scarcity test” of value.
Gold is also an incredibly strong metal. It can be banged and hammered and it rarely ever cracks. Its chemical properties also do not allow it to rust or decay, so it retains its shine and its luster over time and does not lose its value as it ages.
The density of gold is an important component as well. Gold is an extremely heavy metal. This makes it difficult to counterfeit, but it also has a positive psychological affect on people’s minds. When they pick up a bar of gold, it is heavier than they expect it to be, and that gives the impression of real substance.
Finally, gold is beautiful and people want to adorn themselves with it. Its color is striking and its workability makes gold the perfect metal for jewelry or art (especially sculptures).
Finally, gold is a resilient metal that can be refined over and over. If you tire of your jewelry it can be reworked into something new, or melted down and sold to someone else. At Manhattan Gold and Silver, we can solve all your refining needs. Just send us your gold scraps and old jewelry and you can often expect payment on the same day we receive your lot. Please contact us to setup a business account with us before sending metal, we refine metal for businesses, we do not service the general public.