Why is gold so expensive?« Back to Questions List

 

There are many reasons for gold being so expensive.

 

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It is a rare metal and is found in very small quantities.Extracting gold from its ores is a very expensive process. New mines are not being found out. 

 

Pure gold (24k) being very soft, it can be easily converted to into beatiful ornaments. A major portion of gold is being convertedinto ornaments.

 

It is not affected by heat, cold,wind and humidity. It is highly conductive to electricity.  Hence gold is being used in electronic industry. 

 

Gold has been widely used as a substitute for money. Till 1914, currencies of different countries were excahnged in terms of gold only. Even today, the entire global economy depends a lot on gold with many countries keeping tons of gold as part of reserves. 

 

Gold has traditionally been considered as an investment option against inflation and depreciation in currency.

 

Traditionaly, kings and emperors attached great importance to gold creating a deep fascination for this shiny, yellow coloured metal which today also acts as a symbol of affluence. 

 

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Posted by attemptnwin
Asked on August 15, 2013 12:05 pm