Second, gold cannot be synthesized with other materials, but can only be extracted from ore. At the same time, gold mines are extremely scarce on our planet.
Third, human beings accumulate more and more gold through jewelry, gold coins, gold bars and other forms, which will never melt, rust or wear.
Fourth, gold is still an important financial tool, which has the function of mortgage financing in the international financial market. Any country, group, individual or enterprise can use gold as collateral for financing as long as it owns gold.
Monetary value of gold
Before the 1970s, the price of gold was basically determined by governments or central banks of various countries, and the international price of gold was relatively stable. In the early 1970s, the price of gold was no longer directly linked to the US dollar, and the price of gold gradually became market-oriented, and the factors affecting the price change of gold increased day by day.
The monetary policies of various countries are closely related to the international gold price. When a country adopts a loose monetary policy, due to the reduction of interest rates, the country's money supply increases, which increases the possibility of inflation and will lead to an increase in the price of gold.
Although the world has entered the era of low inflation since 1990s, the use of gold as a symbol of currency stability is shrinking. Moreover, as a long-term investment tool, gold has a lower yield than bonds, stocks and other securities. But in the long run, gold is still an important means to deal with inflation.
Baidu Encyclopedia-Gold (Precious Metals)