If there could be any gauge to assess wealth in the globe, it would have been Gold, excepting cash. Gold is undeniably a valuable commodity for which conflicts have erupted.
This natural resource had always piqued people’s interest and has managed to maintain its significance over time.
Gold is not a scarce metal, but it is difficult to find & extract in big quantities using pre-industrial technologies, as everyone who understands metals knows.
Gold’s primary features of corrosion resistance and ease of workability make it very attractive for a variety of applications, including adornment and other industrial uses.
The cost of producing gold (extract it from the earth and purifying it) & how peoples are willing to pay for it are two factors that influence the price of gold.
Gold, unlike most other metals, is particularly costly to create, resulting in a high base price.
If a large number of individuals want to utilize gold & are wanting to purchase it, they would have to compete for it, resulting in a price increase. If there isn’t more demand for gold, the value will be close to the manufacturing cost.
Because aluminum is much more abundant inside the earth’s crust than gold, it is less expensive to produce.
There Are Two Key Factors That Influence The Value Of Any Given Element: Popularity And Abundance.
Aluminum, for example, is a fairly cheap element since it is abundant. Despite its abundance, gold has become extremely expensive due to its widespread popularity.
As a result, it is clear that the time spent mining certain elements increases value to those elements.
Another reason gold functions well in terms of cost is that it does not rust easily, allowing it to maintain a steady weight.
Other metals, including such iron and copper, corrode and oxidize. Gold is scarce, has a relatively constant volume, and does not rust.