The Value of Gold – Cash and Beyond

Saying that gold is worth money is looking at the picture backwards. Money actually only has value because it is worth gold. Human’s use of gold as currency predates history, and the founders of the United States of America set up our currency based on gold. In fact, until recently anyone holding U.S. currency could redeem it for its value in gold through the U.S. Treasury Department.

Value of Gold

Image Courtesy of Whizzer’s Place

Gold Values Throughout History

The intrinsic beauty of gold isn’t the only thing driving its value throughout the ages. Since gold is a soft metal, it was easily molded into coins, bricks and other convenient shapes even before we had the technology to mass produce these items by machine. This quality made gold highly portable, making it easy to use as currency when people held their money rather than banking it.

Gold Values Today

When computers and other high-tech devices entered the history of humankind, an entirely new need for gold was introduced. Now, we value gold not just for it’s worth as an investment or as beautiful jewelry – we also need gold for all of the computers, laptops, smartphones and other devices so important to us.

Gold Values in the Future

When you combine the need for gold in technology with uncertain economic times, gold prices get really interesting. The American dollar was once coveted the world over for its high value in relation to other world currencies. Now, the value of the dollar is plummeting, and investors seek gold coins, bricks and bullion because it will always be valuable no matter what happens to the faltering U.S. dollar.

So, gold has value far beyond its good looks. And just like real estate, long-term prices will always go up. As in ancient times, people today know that gold is always a safe investment.