TrendingBank Holidays OctoberHydrogen TrainGandhi JayantiRavi AhujaIndian IT SectorNew TDS DepositStock MarketBank Holidays OctoberHydrogen TrainGandhi JayantiRavi AhujaIndian IT SectorNew TDS DepositStock MarketBank Holidays OctoberHydrogen TrainGandhi JayantiRavi AhujaIndian IT SectorNew TDS DepositStock MarketThis story is from May 22, 2018Why is gold a precious metal?TOI-Online / Updated: Apr 14, 2020, 16:18 ISTShareAA+Text Size
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Follow us Barring currency, if there could have been any indicator to measure wealth in the world, it would definitely have been Gold. Gold is undoubtedly a precious metal for which there have been wars also. Barring currency, if there could have been any indicator to measure wealth in the world, it would definitely have been Gold. Gold is undoubtedly a precious metal for which there have been wars also. This natural resource has always fascinated everyone and has managed to retain its importance over centuries.People who understand metals will know that gold is not a rare metal, but it's difficult to find and extract the same in large quantities with pre-industrial technology.Gold’s prime characteristics of being corrosion-resistant and easy-to-work on makes it highly desirable for various purposes, such as decoration and other industrial purposes.Price of Gold is not set by any organization, but it depends upon the cost of producing it (extracting it from the ground and then purifying it) and how people are willing to pay for it. Gold, unlike many other metals, is relatively expensive to produce, thus making the base price fairly high. If a lot of people wish to use gold and are looking to buy it, they will have to compete with each other for it, which will ultimately result in a price rise. If not there is not much demand for gold, the price will be near the actual cost of production. Aluminum is a lot more commonly found in the earth's crust than gold, thus it is cheaper to produce. There are two major that determine the value of any particular element, which has to popularity and abundance. Any element that is abundant, such as Aluminum, is very cheap. Though Gold is quite abundant, because of its high popularity it becomes very valuable. Thus, it is understood that the time invested into mining different elements adds value to these elements.Another reason due to which gold works well in terms of value is because gold does not readily oxidize thus, it maintains a constant weight. Other metals, such as iron rusts and copper gets oxidized. Here gold is rare, has a fairly stable volume and doesn't rust away.
What makes gold expensive?Gold is a metal. And like any metal, it is extracted from the ground and then purified. Gold is expensive because of the high cost of production associated with it. Also, gold is extremely popular, which makes its price rise more.
Does the price of gold is fixed by any entity or organization?No, gold prices are not set by any group of companies or enterprises rather it is set by considering the cost of extraction and purification.
Why gold works well in terms of value?Gold supersedes other metal because of its non-oxidation property, unlike iron and copper that rusts and oxidizes respectively. Gold, on the other hand, doesn’t readily oxidize and hence keep up a uniform weight, making it a rare metal.
What is the rarest form of gold? One of the rarest forms of natural gold is Gold-Bearing Quartz.
Is gold toxic to the human body?If we are talking about pure gold, it is chemically inert and is known to pass through the human digestive system without any absorption. Non-edible gold leaf, on the other hand, consists of copper a few times, that can be toxic in high doses.
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Barring currency, if there could have been any indicator to measure wealth in the world, it would definitely have been Gold. Gold is undoubtedly a precious metal for which there have been wars also. This natural resource has always fascinated everyone and has managed to retain its importance over centuries.People who understand metals will know that gold is not a rare metal, but it's difficult to find and extract the same in large quantities with pre-industrial technology.Gold’s prime characteristics of being corrosion-resistant and easy-to-work on makes it highly desirable for various purposes, such as decoration and other industrial purposes.Price of Gold is not set by any organization, but it depends upon the cost of producing it (extracting it from the ground and then purifying it) and how people are willing to pay for it. Gold, unlike many other metals, is relatively expensive to produce, thus making the base price fairly high. If a lot of people wish to use gold and are looking to buy it, they will have to compete with each other for it, which will ultimately result in a price rise. If not there is not much demand for gold, the price will be near the actual cost of production. Aluminum is a lot more commonly found in the earth's crust than gold, thus it is cheaper to produce. There are two major that determine the value of any particular element, which has to popularity and abundance. Any element that is abundant, such as Aluminum, is very cheap. Though Gold is quite abundant, because of its high popularity it becomes very valuable. Thus, it is understood that the time invested into mining different elements adds value to these elements.Another reason due to which gold works well in terms of value is because gold does not readily oxidize thus, it maintains a constant weight. Other metals, such as iron rusts and copper gets oxidized. Here gold is rare, has a fairly stable volume and doesn't rust away.
