The gold intrinsic value usually depends on the primary uses. Gold holds a lot of value than any other currency, as individuals used gold as a medium of exchange. Primarily in the world today, people use gold as a signal of wealth.
Gold used to be held by countries to back currency but now that is changing.
It is used to make jewelry and demand there is high.
Thus, gold is highly valuable in most sectors of life. However, due to its durability and electricity conducting property, gold can be used in various industries.
In the past gold, individuals used gold as the most fantastic medium of exchange, more so foreign trade. However, technology and modernity have impacted negatively on intrinsic value.
It is similar to bitcoin in that it is worth what people will pay.
A pound of gold is worth about $26k at current market prices.
Gold vs. silver
When you think of buying either of the precious metals, either silver or gold, you need to be aware of many distinctions before purchasing. The following is the comparison between gold and silver.
1. The price of silver is much volatile than gold’s price. Remember, the lower price of silver makes the annual supply value smaller. Different from gold, where the higher price makes the value of its yearly supply higher. Thus currently, the gold supply annually is 12 times more than silvers.
2. Silver becomes more affordable than gold. Silver has more similarities with gold; thus, you can get silver at a lesser cost then serve the same purposes as gold. However, gold is more expensive because of its value; you need a lot of cash to obtain the same amount of gold as you would have gotten silver.
3. When storing gold, you don’t need a lot of space, as you can keep high-value gold in a small area. However, with silver, you need quite ample space to store it. In addition, if you want to invest in silver, you need to consider a dry storage place.
4. In terms of industry usage, people use a lot of silver in industries compared to gold due to its uniqueness. Its price makes it cheap for companies to use it while processing medical appliances and electronics.
5. The stockpiles for silver are falling while the stockpiles for gold are rising. Most countries, governments, and institutions used to have larger inventories of silver. However, currently, most of them have reduced the silver stockpiles and replacing them with gold. The reason being silver nowadays is not used as coinage. In contrast, most governments and banks having huge stocks of gold in their reserves.