Precious metals come in different forms and properties, and everyone has their preferences in choosing between them. Gold is soft and malleable, while platinum is strong and has a high melting point. These different characteristics, whether in composition, color, or extraction method, play an important role in determining the quality of the metal and its trading prices. What are the most important elements that determine the value of the metal?
- Scarcity of metal
The rarity of a metal is one of the most important elements that determine its value. Gold is one of the rare metals compared to many other metals such as silver. Which leads to an increase in its value as the demand for the metal increases and the supply is limited, unlike silver, which is abundantly available, which leads to a decrease in its value.
-Method of extracting the metal
The method of extracting the metal also plays an important role in determining its value. The method of extracting and purifying gold is considered more complex than other minerals as it requires advanced technologies and large resources, which contributes to increasing the cost of production and thus increasing the price of gold.
- Uses of metal
Gold has a long history of use. It has been used by humans in the jewelry, electronic, and aerospace industries due to its good conductivity of electricity, resistance to corrosion, and ability to be shaped. These multiple uses make it a precious metal.
- Space and storage method
Some metals need more storage space than others. But gold, due to its high density, takes up less storage space compared to other metals, which makes it easier to store and transport. If you buy an amount of gold and an amount of silver for the same amount, you will need more space to store the silver. In addition, some metals corrode and change color over time, which does not happen with gold at all, as you can keep it without worrying about any influencing factors.
- Preserving value
The years have proven that gold is not just a metal, it is a safe haven that defies the vagaries of time and maintains its value throughout the ages. People have used it during economic crises and during periods of prosperity, and it has proven its worth at all times.
Gold's significant impact on the economy enhances its value, as it is considered an indicator of the stability of the global economy. The use of gold in financial transactions and currency reserves contributes to enhancing people’s confidence in it as a store of value.
Finally, gold remains a unique metal and has characteristics that make it worthy of its high value. It is a source of elegance when used in jewelry, and a source of confidence in difficult economic times. In addition to its technological and industrial uses, and maintaining its value over the years.