By Nick Maggiulli of Of Dollars and Data
For millennia gold has played a significant role in human society. From ancient civilizations to modern times, it has been used to showcase status among neighbors, to display power among rulers, and to facilitate trade among nations.
Yet, despite its shiny exterior, it is intrinsically worthless. Outside of its limited uses in electronics and dentistry, gold only has value in human society because it is gold and not something else. This explains why over 80% of annual global gold demand is for jewelry and investment purposes and not for industrial use. We spend most of our time using gold as gold and not as a conductor of electricity or as a replacement for your pearly whites.
But why gold? Why not aluminum? Or iron? Or something else entirely?
And, more importantly, should you be investing in gold? Why or why not?
Let’s begin…. read more