You always hear it in the news. It seems that the price of gold goes up whenever the U.S. Dollar goes down. Even when the Dollar is up gold still seems to make its way to the top of the list as the worlds most valuable metal. Some would say it’s our most valuable commodity (besides time of course). But, have you ever wondered why it’s so regarded?
When you think something is worth a ton of money or has the potential to make a ton of money, it’s a “gold mine”. If a person is super valuable he or she is, “worth their weight in gold”. What is our infatuation with gold? For the answer, we’ll have to go back in time.
The Gold Standard
Gold has been used for thousands of years as ornaments for kings and queens, global currency, and a symbol of status and wealth. As mentioned in this SES article, “Ancient civilizations used gold for the decoration of tombs and temples.” We as Americans began our economic system with money backed by what was referred to as the “gold standard”.
Back in the daily paper currency was nothing more than a simple receipt for the amount of gold it was worth, which could be cashed in at any time. Try and do that now and you’ll quickly discover how feeble the “money” in your wallet or purse really is.
So, with gold no longer being used to back currency in the world and only a few notable kings and queens remaining, why is gold still sought after and coveted so aggressively? Surprisingly the answer has less to do with finance and more to do with science.
This article from The Hard Assets Alliance Blog does a great job of easily explaining the many different reasons why gold is so valuable. Below I have provided some of the key bullet points.
Why Gold Is So Valuable
Gold cannot be destroyed by…
- Water (it doesn’t rust or tarnish)
- Time (coins remain recognizable after a thousand years)
- Fire (minimum 1945.4° F to melt)
Gold doesn’t need…
- Feeding (like cattle)
- Fertilizer (like corn)
- Maintenance (like printing presses)
As a metal, gold is uniquely…
- Malleable (it spreads without cracking)
- Ductile (it stretches without breaking)
- Beautiful (ask any bride)
- Rare (all the gold ever found would only fill two Olympic-sized swimming pools)
Somehow it all comes back to science, doesn’t it? In short, it seems like the top two reasons among many that golds are so valuable is its strong physical longevity and appearance.
Gold is in the bible. It’s in history books. It’s been around for ages and it’s still here, just as shiny as ever. It can be used to manufacture everything from electronics to China (the dinnerware).
Shifting back to the financial advantages, gold is; liquid, portable, divisible, durable, consistent, convenient, value dense and private. In addition, it can not be printed, counterfeited or manipulated by a central banker.
Do you know The Federal Reserve? The central bank we allowed to have control of our currency. The central bank that is not in any way a part of or controlled by our government and prints money out of thin air.
I talk about that at length in my article, Show Me The Money: Is Our Economy One Big Ponzi Scheme? Now that the facts are out-of-the-way, let’s get a little extra. Extra-terrestrial that is.
E.T. Gold Home
Within the UFO community, it is believed that aliens have often and continue to visit Earth mainly for gold mining. While opposition to this theory believe it dumb that aliens wouldn’t just get gold somewhere else in the galaxy or galaxies, a number of people still believe we’re just one big “gold mine” to them. Check out some of these quotes from this ABC News article titled, Aliens Love Gold As Much As Humans Do. Yes, I laughed a little after reading the title, but who am I to say these guys are right or wrong. Below I’ve provided some key quotables from the article.
“Some have suggested that aliens used gold in their atmosphere to reflect the sun’s rays and preserve their planet.”
“Gold is an inert material, it doesn’t react with anything,” he said in an interview for the popular History channel television series Ancient Aliens. “It is a wonderful conductor of electricity… and… a perfect reflector of infrared energy. You can use gold blankets to protect spacecraft against the intense heat of a star or any sort of heat source.”
“One of the most famous alien visitations is supposed to have occurred in Cusco, Peru. The sun temple Qurikancha had a giant golden disc that some alien experts believe was a symbol of a gold-plated UFO that had landed in front of the Inca emperor Atahualpa, legendary for having direct contact with the “sky gods.”
“Other theorists go even further, claiming that the Great Pyramid of Giza is an ancient reactor that aliens used to make gold. But independently from whether you believe in aliens, ancient temples and mausoleums are like giant repositories for old sciences that have been lost.”
Crazy, huh? If you liked learning why gold is so valuable let me know. Leave a reply in the comment box below.