Gold has always had decorative value as jewellery and as currency. In addition to that gold has a certain mystery that makes it appealing. N the financial world people never want to use the word “mystery” or even agree that mystery surrounding something is appealing. However, gold has mystery in the economic world in art world in industry and other things. The yellow metal is able to stimulate a subjective personal experience but it can be objectified as a medium of exchange.
When faced with the dilemma of finding a way to implement the barter system more effectively, our ancestors tried a lot of systems from cowrie shells and beads to other methods that were meant to make things better. The settled on gold because almost everyone recognised its value. However, there were challenges, chief amongst them was the scarcity or rarity of gold, other metals were used and finally, paper was adopted. Still, gold held a high status as far as value was concerned and it still does as evidenced by the growing number of investors who buy bullion.
The Psychology of gold
Every country has its own currency. Some currencies have more value than others but the value of gold is something that translates across countries and economies. If the modern economic system were to collapse, gold might be deemed useful. As panic would probably arise from a complete economic meltdown, people might look again at gold as an acceptable method of payment.
A piece of gold is not useful if it cannot be exchanged for something valuable. You cannot eat but society has agreed that the yellow metal can be exchanged for currency or something. Exchange your gold for cash so that you can buy something or pay for your groceries.
Benefits of buying gold
Beyond the mysterious allure around gold, one can count a whole bunch of reasons why it is a good idea to buy gold. Instead of declining with time, gold remains stable. This makes it a valuable store of wealth. It is used as a safe haven in times of inflation. Inflation erodes currencies but because of the belief that many people share that gold is a precious and valuable metal it doesn’t suffer the same fate as currencies it is ideal as a medium of exchange. There are other qualities that make gold ideal. It does not corrode. Even if your gold has been banged and scratched, it is valuable. Gold is uncommon and rare but there is still enough to keep a healthy circulation around.
Elementally, gold is a reasonable choice for the exchange of goods. There is enough of it to make coins bars and other products but also adequately rare that just not anyone can make their own. Gold has always appealed to humans. It doesn’t corrode and holds its value. For centuries people have put their trust in gold ensuring that it retained its value. This is why one should buy bullion to protect themselves against an uncertain future.