Why Is Gold So Expensive? The answer is, The relevance of knowing why gold is so expensive cannot be underestimated. This is because you need to know the value as to why you have to spend so much on purchasing your gold items and materials. If you do not come to terms with the reason you have to spend so much on acquiring gold, you might begin to feel it is not worth your money. Hence, you will be denying yourself the rare privilege of owning gold and pure gold items, especially when you have the monetary capacity to own them.
Before your curiosity to know ‘why gold is so expensive’ can be met, you need to be someone who purchases gold or who has an interest to purchase gold items. Of what benefit can this be to someone who has no flair for gold items? Such information cannot be well appreciated by such a category of people.
As a serious buyer of gold items or someone who is interested in purchasing gold items, it is more honorable to know why gold is expensive before getting to where the gold items are sold. Information is power and having first-hand information about gold is non-negotiable. This will save you the stress of having to ask the buyer unnecessary questions which can trigger annoyance in the seller. Of course, sellers of gold items do not want anyone to waste their time by asking them questions upon questions. They might feel you are not ready or worthy to own the gold item.
Gold item sellers desire to attend to buyers who are ready to pay the worth of the gold easily, without having to get weary of the price or question the expensiveness of the gold item. For them, they believe that everyone should know already that gold is actually expensive. No wonder a saying goes thus: All that glitters is not gold. Aside from its literal meaning, this saying portrays how much gold is treasured and greatly esteemed by people. In essence, something that is so much treasured and highly esteemed by people, can obviously not be cheap or fairly expensive. Gold and gold items have so much value that they cannot but be so expensive.
It is not difficult to know why gold is so expensive. Now, come along and let us examine some reasons gold is so expensive below;
Reasons Gold is so Expensive
• It is a natural resource
Gold is not just a natural resource but one with high grades and class. You cannot compare the authenticity, worth, and appearance of gold to a natural resource like wood or timber. As a highly esteemed natural resource that is usually wished for and sought after, it is bound to be so expensive to get. Also, as a unique natural resource, the stress that went into discovering the gold cannot be overemphasized. How about the technicalities and procedures in getting the gold extracted? So much energy, expensive tools, and instruments were put in place. Hence, these sacrifices, strengths, and investments in getting natural resources are one of the major reasons gold is so expensive.
• It costs a lot to refine it and produce an item from it
The creativity, skill, and technicalities in refining gold are a major cause of its expensiveness. How about crafting out various pure items from the gold? It is no small work. You cannot expect such gold items to be so cheap. Rather, they will have to remain expensive. For instance, to attain the desired purity in gold, expensive chemicals (such ad hydro-chloric acid) and high-temperature flames have to be put into the right use. These chemicals cost a lot and a large quantity is required to ensure a presentable and attractive golden product.
• The Value of Gold and The U.S Dollar
The increase in the quest for gold, especially by highly influential people is one of the causes of gold expensiveness. Also coupled with the value of the U.S. dollar, the desire to own gold as a force against currency devaluation and the prevalent inflation is really causing a price hike of gold.
Conclusion:
Therefore, It is evident that gold is not your usual metal and its production mechanisms and financial expenses are a major factors and determinants of its high price. Besides, everyone is proud to rock an item made from pure gold. Hence, the uniqueness and demand for gold is an obvious insinuation that it can only be gotten on the high side.
Frequently Asked Questions
1. Did the Covid 19 pandemic contribute to the expensive nature of gold?
Yes, gold prices sky-rocketed into multiyear highs in the initial days of the Covid-19 pandemic. For instance, as the cases spread internationally and the stock market cratered, gold prices were escalating.
2. Did the Russian Invasion of Ukraine lead to the spike in the gold price?
Certainly, the Russian invasion of Ukraine actually led to the pop-up in the gold price. In this situation, it is advisable to avoid the rush. In fact, gold investors are expected to be wise, watchful, and prudent so that they do not have to sell out of the available stocks.
3. Do people gift others gold and gold items?
Giving gifts to family, friends, and colleagues is a very essential aspect of showing love, concern and respect to our loved ones. However, gifting pure gold items to others is not very common at all. This is because of the very expensive prices involved. Even if the gift items bought are gold in color, it just makes it presentable and attractive but everyone understands the peculiar price hike in the price of gold that makes it seem only appropriate for the rich.
4. Is gold only meant for the government?
No, individuals are allowed to own gold as well. Initially, from 1933 to 1974, it was illegal for U.S. citizens to own gold in the form of gold bullion, without a special license. However, on January 1, 1975, the ban was lifted and gold can now be freely held in the U. S. without any need for a license or any sort of restriction.
