There is probably nothing throughout the history of humanity that has consistently held such value as gold. It’s invariably an important factor in almost each and every major society that people have built. It has been used for worshiping, as currency and even as burial pieces throughout history. At each and every turn of events, gold is held in high regard.
And it’s probably not surprising either. Given that it is so rare (relatively speaking), it is no wonder that even the most rich and powerful across all ages have made a fuss to collect as much of the stuff as possible. Even today, it seems that gold is making a comeback. With people trusting the global economy less and less, they are often turning to precious metals and gold IRA‘s to protect their hard earned wealth.
Some uses for gold were better than others
However, the smartest use of the precious metal is without a doubt using it as a currency. While before “money” as we know it today, people would trade goods and services for other goods and services. However, it wasn’t the most practical of methods because if one person wanted what another person had or was able to make, but this second person wasn’t in need of what the first person had to trade, a transaction between both parties became difficult.
The advent of gold used as a currency (probably by the Romans) made it possible for anybody to trade with anybody, regardless of the services either party provided. Because the metal pressed as coins had intrinsic value, it was necessary that people holding it had obtained it in exchange for a service rendered or a good sold. Therefore anybody who was able to earn gold could use it as they see fit to buy whatever they wanted. It was truly the dawn of the markets as we know them today.
Is technology making gold irrelevant?
It seems that nowadays the tried and tested methods for trading are being put to the test by the never ending progression of technology. However, gold still and will continue to maintain its value regardless of what happens with “money” as we know it and regardless of how technology progresses. Why? The reason is simple. Gold is rare. There isn’t a lot of it on this planet and because of that, it will always be in demand.
On top of that, gold is often used in the devices that we use to access all of this technology. Smartphones, laptops and tablets all use gold somewhere in their components which ensures that the demand for gold will always stay high.
The demand will always be high
But ultimately, it doesn’t matter is gold gets old or not. Because it is so rare and because it has been used by humans for so long, it will continue to be valuable and it will continue to be a symbol of social status. It will always represent something to the people who own it regardless if it is part of a financial plan or if it’s a piece of jewelery.