Why is gold so expensive

[EddieM]

Well, obviously because it's rare and expensive to extract, but then rocking horse s**t is rare as well. So what is gold crucial for, I can't think of anything? Yes it's shiny, doesn't corrode, is a great conductor of electricity and heat, but there are plently of alternatives. So why? Just mankinds obsession with shiny stuff?

 

[empip]

At least one could wear it - Far more flattering than Fiat smoke - it would seem.

A neat write up Nat- G-Mag 'The Real Price of Gold'

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[EddieM]

At least one could wear it - Far more flattering than Fiat smoke - it would seem.

A neat write up Nat- G-Mag 'The Real Price of Gold'

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Reasonable article, but sums it up really, gold, expensive for no particular reason.

If someone could come up with a gold filter, then filtering the oceans would provide way more gold than has ever been extracted from ore. But why, it's just not that useful ??

 

[ToffeeNick]

It's the perfect commodity that's why and it's commodities that make the western world tick.

 

[EddieM]

It's the perfect commodity that's why and it's commodities that make the western world tick.

Eh?

 

[ToffeeNick]

you know commodities - gold, oil, diamonds etc. if you have a commodity that never degrades and is always in demand then it will always retain its value.

 

[EddieM]

you know commodities - gold, oil, diamonds etc. if you have a commodity that never degrades and is always in demand then it will always retain its value.

I, well hope, I know about commodities, but what is it's real value???

Don't get me started on diamonds, not rare, not valuable, and can be synthesised. Being taken for a ride I feel.

 

[tim west]

Is it cos its shiny?

 

[olly_k]

It has it's uses but it's rarity and peoples lust for the stuff is enough to drive the price IMO, like self sustaining...

In fact, look on a note the Bank of England promises to pay the bearer.... now I think that basically suggests that the paper you hold has historically been tied to commodities such as silver and gold and that should our currency ever dive, the BOE are obliged to pay the rate in something that is worth the original value, hence gold or silver.

Gold is always going to be a greater long term safety net than the notes we hand in to purchase goods, which is why many people are happy to swap cash for gold when economies are looking a bit sh!t.

That's my take on things anyway

 

[bengasman]

Well, obviously because it's rare and expensive to extract, but then rocking horse s**t is rare as well. So what is gold crucial for, I can't think of anything? Yes it's shiny, doesn't corrode, is a great conductor of electricity and heat, but there are plently of alternatives. So why? Just mankinds obsession with shiny stuff?

In essence: high demand, low supply

 

[EddieM]

humans, just weird. There is no hope

 

[bengasman]

humans, just weird. There is no hope

Not all humans are women.

 

[Thermo]

its expensive because historically it has been used as a standard measure for wealth. As previously said, curency was set against it. you used to be able to go into a bank and demand the face value of the money in gold (theoretically anyway!) It is still used as a store of wealth and a measure across the globe of the value of currency. Hence it aint cheap!

 

[JohnD]

Anything is worth as much as someone is willing to pay for it, and as little as someone else is willing to sell it for.

Since most gold is fundamentally useless, the price is just what people think it is.

 

[EddieM]

Yeah, I know all of that, but it doesn't answer the fundamental question, why is it so coverted, it just flys in the face of reason. You can't eat it, burn it, or get any shelter from it. Yes it has some great properties, but nothing that can't be got around. As I say humans, just plain strange. Same reason that people put great store on a lump of highly pressurized carbon.