Warren Buffet said gold has “no utility.” When asked why central banks hold gold, Former Fed Chairman Ben Bernanke simply said, “tradition.” The thing is, they’re both right. Gold doesn’t produce earnings or dividends, and many banks and investors do hold it for, among other reasons, tradition. And yet a single ounce of gold—roughly the size of a sugar cube—currently sells for over $1,000. And it’s been part of the world’s many monetary systems for literally thousands of years. What makes it so darn valuable? There are five primary reasons why gold has been valuable since it was first discovered, and why it will retain its value into the future (check the gold price per ounce ). Let’s have a look at them. Reason #1: Chemical Properties The first reason gold is valuable is linked to its physical properties that render it ideal for use as money. In the days of early man, barter was the most common means of trade. But as huts evolved into houses and villages ...
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