Man makes 137,000 yuan selling a gold bar, why is precious metal gold so valuable?

The allure of gold lies not only in its aesthetic appeal and historical significance, but also in its unique chemical properties that make it a highly sought-after precious metal. To understand why gold is so valuable now, one must delve into the chemistry of this extraordinary element.

Gold, which has the chemical symbol Au (from the Latin word Aurum), is a dense, soft, malleable, and ductile metal. Its chemical stability is one of the main reasons for its value. Gold is highly resistant to corrosion and oxidation, meaning it does not tarnish, rust, or degrade over time. This stability is due to gold having a full d-shell of electrons, which makes it less reactive than many other metals.

Another important aspect of gold's chemistry is its atomic structure. Gold has an atomic number of 79, meaning it has 79 protons in its nucleus. This number of protons gives gold a high atomic mass and density, making it one of the densest naturally occurring metals. Gold's high density makes it valuable in jewelry and coinage because it allows for a considerable amount of value to be represented with less material.

Gold’s chemical properties also make it an excellent conductor of electricity and heat. It is one of the best conductors of electricity of all metals, which is why it is often used in electronic components and high-end electrical wiring. This conductivity, combined with its resistance to corrosion, ensures that gold remains reliable and effective in a variety of applications for a long time.

In addition, gold’s ductility and malleability are excellent. It can be hammered into extremely thin sheets or drawn into filaments without breaking. This makes it ideal for making intricate jewelry and for use in a variety of industrial applications that require flexibility and durability.

Gold’s current high value is also influenced by market dynamics. Gold is considered a “safe haven” asset, meaning that during times of economic uncertainty or geopolitical unrest, investors tend to flock to gold as a means of protecting their wealth. The recent surge in gold prices can be attributed to a variety of factors, including inflation concerns, currency devaluation, and geopolitical tensions.

In addition, gold’s limited supply plays a major role in its high value. Gold is a rare element, accounting for only 0.004 parts per million of the Earth’s crust. The mining and refining process for gold is complex and resource-intensive, contributing to its scarcity and, therefore, high price.

Man makes 137,000 yuan selling a gold bar, why is precious metal gold so valuable?
Precious metal gold is valuable for several reasons, including its scarcity, unique physical and chemical properties, historical and cultural significance, and role in the global economy. Here is a detailed analysis:

Scarcity and Difficulty of Extraction

Limited Global Reserves: Gold reserves are scarce worldwide. According to data from the US Geological Survey, global gold reserves are approximately 57,000 tons. With continuous mining and consumption, the remaining exploitable gold resources are gradually decreasing.
High Extraction Costs: The extraction and refining of gold require a large amount of capital, advanced technology, and labor. Gold often exists in low - grade ores, and complex processes are needed to extract and purify it. For example, in some underground gold mines, the mining process involves multiple steps such as blasting, crushing, grinding, and flotation, which increases the production cost.

Unique Physical and Chemical Properties

Excellent Ductility and Malleability: Gold is highly malleable and ductile. It can be hammered into extremely thin sheets or drawn into fine wires. For example, one gram of gold can be drawn into a wire several kilometers long, and it can be hammered into a gold foil with a thickness of only a few microns. This property makes gold easy to be processed into various exquisite jewelry and handicrafts.

Good Conductivity and Corrosion Resistance: Gold has excellent electrical and thermal conductivity and is highly resistant to corrosion and oxidation. It can maintain its stability in various harsh environments and is therefore widely used in the electronics industry to manufacture high - precision components such as connectors and integrated circuits.
Historical and Cultural Significance

Symbol of Wealth and Power: Throughout history, gold has been regarded as a symbol of wealth and power. In ancient civilizations, gold was used to make crowns, scepters, and other items for royalty and nobility, demonstrating their supreme status. For example, the pharaohs of ancient Egypt were buried with a large number of gold artifacts, such as the famous Tutankhamun's gold mask.

Traditional Jewelry and Cultural Relics: Gold has a long history in jewelry making. Different cultures have their own unique gold jewelry styles and craftsmanship. For example, the gold - inlaid jade jewelry in ancient China combines the beauty of gold and jade, reflecting the exquisite craftsmanship and cultural connotations of the time. These gold - related cultural heritages have further enhanced the value of gold in people's minds.

Role in the Global Economy

Safe - Haven Asset: In times of economic crisis, political instability, or market volatility, gold is considered a safe - haven asset. Investors tend to flock to gold to preserve the value of their assets. For example, during the global financial crisis in 2008, the price of gold rose significantly as investors sought refuge in the precious metal.

Important Reserve Asset: Central banks around the world hold gold as an important part of their foreign exchange reserves. Gold reserves can help maintain the stability of a country's currency and enhance its economic strength and international status. For example, major economies such as the United States, Germany, and Italy have a large amount of gold reserves.