Why is gold such expensive?

Jump to Last Post 1-3 of 3 discussions (5 posts)
  1. cherryseeds profile image60
    cherryseedsposted 5 years ago

    Why is gold such expensive?

    I have struggled to understand the price of gold as a substance. As a scientist with some knowledge in Chemistry I understand its solidity and quality as a material but yet I don't see how they may justify the price tags written on the golden items to me. could anybody explain to me why?

  2. profile image0
    JThomp42posted 5 years ago

    Gold is expensive because there is very little found in what is mined and extraction costs are high. Moreover, gold is running out.
    Another aspect to gold being expensive is you are looking at it from the perspective of what it is priced in. For U.S. citizens it is priced in dollars. As our government via the Federal Reserve prints more dollars, things become more expensive.
    Too look at it another way, if all the money in the world bought all the goods in the world, and then you doubled the amount of money, you haven't created any more wealth, you've just made goods twice as expensive.

    1. cherryseeds profile image60
      cherryseedsposted 5 years agoin reply to this

      Thanks JThomp42, it means then that dollars have a link with the price of gold? then there is point in it that I didn't have in mind, thank you very much. I only attributed it to being precious

    2. profile image0
      JThomp42posted 5 years agoin reply to this

      You are very welcome cherryseeda!

  3. profile image0
    iCrystalWriterposted 4 years ago

    And in addition to what JThomp42 said, gold really is not the only precious metal that is expensive, platinum is usually more expensive than gold.

    Any precious metal that is used as jewelry and in the industries generally tends to be expensive because of its scarcity, the demand for it and its perceived value and how much others are generally willing to pay for it.

    There is a real worth or market price for the precious metals like gold and platinum, which is usually listed on some sites on the internet or in the newspapers. However when these metals are used in jewelries for instance, some other costs (middlemen costs, jewelry stores cost of doing business etc) get added to them before they get to the end-user (through the jewelry stores etc) as a jewelry item or piece.

    Those other costs could be as high as 25%, 50% etc or more depending on the store where you may be buying your jewelry piece from. This is one of the main reasons why when you want to resell a jewelry piece that contain such metals and/or some valuable gemstones, you may only get back a fraction of what you actually paid for it, even if you only bought the item from the stores today.

    Jewelry pieces are generally valued, that is their real worth are based on the market/resale price of the precious metals (and/or valuable gemstones) in them and not on the retail price of the item in the stores.

 
working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)