Interestingly, gold was formerly a monetary asset (i.e., its financial value), but it is now considered a valuable commodity, as evidenced by its prevalence in premium jewelry (e.g. watches, necklaces, rings), electronic products and prize medals. Gold is neither an asset nor a commodity. So is it practically useless or, at best, is it a collector's item? Undoubtedly, some gold investment products may have aesthetic or emotional value (think grandmother's jewelry or some rare coins).
For those looking to invest in gold, the best option is to look into the Best Gold IRA custodians to ensure that your investment is secure and profitable. And it can be argued that the value of gold is due solely to its scarcity and to the expectations that future investors will price it higher than what we have now, just like when we collect baseball cards or stamps. However, this is not the distinguishing feature of collectibles, but of other investments (why do people buy stocks that don't pay dividends?) — and also the media of exchange. In addition, for most investors, the aesthetic characteristics of gold don't matter; only its monetary aspects are relevant. Gold is the metal we'll turn to when other forms of currency don't work, which means that gold will always have value in difficult and good times.
During the gold standard and, later, the Bretton Woods system, when the US dollar was backed by and linked to the price of gold, there was a close relationship between gold and US inflation. However, we know that the demand for gold is actually much higher, since the WGC focuses on annual flows and ignores huge gold stocks and the fact that demand and supply for gold come from marginal buyers and sellers who accumulate a large number of ingots. Demand for gold in China had exceeded its production by a wide margin many years ago, and therefore, China began importing gold to meet the increase in demand. According to data from the World Gold Council, it only represents about 17.5 percent of total demand for gold.
Gold can stimulate a subjective personal experience, but it can also be objectified if adopted as an exchange system.