Business & Finance Finance

The Intrinsic Value of Gold

The economic science and business art of gold trading has come a long way since man has begun to use it for trade.
Throughout modern history, gold has been a dependable currency equivalent to paper money when times were hard and printing materials were scarce.
It has also proven its worth in history to serve as a median of global economic affairs, the proliferation of trade goods, and as a measure of a country's buying and selling capabilities.
Gold as an investment is more prevalent as a currency than a commodity.
The more gold that a country or an individual has, the more competent they are in terms of faring well with others.
Though e-currency has become the popular choice, nothing beats the old-fashioned reliance on gold.
Simply put, gold is valuable in itself, and though external factors may decrease its value, it still quite pricey.
It is also a myth that if all the gold is mined it would lose its value.
As explained by the Diamond-Water Paradox, gold will always remain valuable in spite of the clear value of other non-renewable resources.
Then, the question is how are speculations accurate in determining the value imposed on gold? Is it purely based on a whim or on a serious deliberation from a consensus of countries? This is where the debate mostly falls upon traders.
It is up to each individual to justify the correlation of intrinsic gold value against the back draft of the entire gold trading community.
The idea of having a gold standard has been debated long before countries even worried about oil prices.
It has been the universal quantity of a nation's wealth since ancient times, and until now, it was used to rank a country's economic status.
However, some economic theorists disagree that gold is not that much of a reliable intermediary between commodity and currency.
It is in itself expensive but not quite a big game changer in the world of international trading.
Whatever the verdict may be, gold has maintained its status as a top currency and commodity amidst the rise and fall of currencies and world markets.
There are even initiatives to invest in gold and convert them to cash.
That is how valuable gold is, in our times.
The effort exerted by many countries that are experiencing recession is to store as much gold as possible in order to regain the losses of a high-inflation economy.
Gold truly is a lifesaver just as it was for ancient civilizations.

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