Back To School – Value of Gold

August 28, 2022

Historically gold has always been a precious metal. Why is that? What has made gold the gold standard for so long? This time on the Stewart Kuper Jewelers blog we’re going back to school to talk a little bit of history and why we have always valued gold!

Why Have We Always Valued Gold?

Humans have a long, long history with gold. It is a material found and used in worship or places of worship. It is a precious metal worked into intricate decorations. It is used in bricks as a representation of large quantities of wealth. Throughout history human civilization has looked to the luster of gold as a mark of importance and wealth. It is rare, it is beautiful, and it is relatively easy to work into beautiful things. But that’s not the only reason it took over.

Gold’s Value is Holding Value

Long ago, civilizations developed  ‘commerce’ and the trading of goods known as the barter system. It worked for a while but at a certain point, it became difficult trading two gallons of milk to have your neighbor repair your shoes, especially since he didn’t drink milk and needed some chicken eggs to get the cooper to build a barrel; you get the idea. That’s where money (in this case, coins) became more usable.

A coin is easier to exchange between people – it’s easy to hold, it has a value associated with it that everyone recognizes. While metals like iron, lead, copper, or aluminum may corrode and degrade over time (and thus losing whatever value they represented) gold doesn’t. Where iron and lead and copper are common metals, gold is rare enough that it won’t flood the market, and that rarity gives it value too. 

Gold is also easy to work with and can melt over a flame, making it a great option to stamp into coins. The ability to work the gold also means it can be turned into other valuables, such as jewelry! Silver meets all these requirements as well.

It’s for these reasons that gold has a clear value for economists, but what about the rest of us? Why do we value gold?

Gold Is Worth Something Because We All Believe It Is

Ok, this might not be what you expected but here we go. In addition to the way economists value gold because it checks certain boxes for their purposes, we all have valued gold for centuries because it feels right. Gold is beautiful to look at and hold, it has a psychological power to us, being used in religious symbols, worked into art, and being tied to wealth and value for thousands of years.

To Wrap Up

Gold is valuable because it is abundant enough to create coins, but rare enough so that not just anyone can produce it. Gold doesn’t corrode, making it a great way to ‘store’ value long term, making it a great metal to base economies around.

Gold is desirable to us because it is physically and emotionally appealing, both for its beauty and its place of importance culturally.

If you have gold and diamond jewelry you no longer wear, Stewart Kuper Jewelers would be happy to buy your well loved gold and diamonds.

Contact us here or give us a call at 520-462-5612 to schedule a one-on-one appointment.