Why Gold Holds its Value
When you think of riches, what comes to mind? For many people, gold signifies wealth and luxury. Throughout history, gold has been one of the most valuable things a person can have—whether it’s gold coins in a pirate’s treasure chest, heavy gold jewelry belonging to an ancient Egyptian pharaoh, a golden nugget mined from the hills in California during the Gold Rush, or bars of gold in a bank safe.
But what makes gold so valuable? And why does gold hold its value? We’re here to explain.
The History of Gold
Since the first coins containing gold appeared in approximately 650 B.C., the precious metal has been a highly valuable commodity for people all over the world. For centuries, societies, and later economies, have placed value on gold, sustaining its worth. When other forms of currency, like the U.S. dollar, start to lose value, gold is the metal we fall back on during tough times. Because of this, gold continues to be seen as a good and practical investment as insurance against economic downturn.
How Gold Holds Value
Unlike paper currency, coins, or other financial assets, gold has kept its value over the ages. Part of the reason for this is that gold is a special metal with unique properties. Its atoms are heavier than those of other metals, and the electrons move faster, allowing for absorption of light which gives gold its unique shine and color. Additionally, gold doesn’t corrode and can be melted over a common flame. This makes it easy for jewelers and coin makers to work with. Most importantly, people see gold as a tangible means of passing their wealth to future generations, thus preserving a family legacy.
Investing in Gold
Between 1998 and 2008, the value of the U.S. dollar fell against other currencies, motivating people to invest in gold for its security and lasting value. During this time, the price of gold nearly tripled, hitting $1,000 an ounce in 2008 and almost doubling between 2008 and 2012. Today, we are once again plagued with inflation, which is a sign that we may be headed for another recession. Because of this, people are turning to gold once more, investing in what they know to be a sure thing as protection against future loss.
If you are looking to sell your Rolex in Denver to someone who buys gold, don’t trust just anyone! Do your research to make sure your buyer is reputable and experienced so you can be sure you get the best price for your valuable gold.