although gold is not necessary for survival the price of the gold is high identify and explain the concept
Answers
Answer: Gold is an unproductive asset. Unlike shares or bonds or deposits, money that you invest in it does not contribute to any kind of economic growth. A pile of gold will stay the same pile of gold no matter how much time passes. ... The value of gold has always been driven by the fear that other asset classes will lose value.
Explanation:
Answer :
The concept behind the high price of gold despite it not being necessary for survival is economics and market demand. Gold is a finite resource and its supply is limited, leading to increased demand and competition among buyers. Additionally, gold is widely considered as a valuable investment and store of wealth, which further drives demand and contributes to its high price. Moreover, gold has a long history of being used as currency and as a symbol of wealth and power, making it a highly sought-after commodity. These factors combined result in the high price of gold even though it does not serve any biological or practical purpose for human survival.
Explanation :
The concept being referred to here is that of economic value, which is distinct from intrinsic or inherent value. Economic value is determined by the market and is a reflection of the demand for a particular product or commodity, as well as its availability and the cost of production. In the case of gold, it has been widely valued and used as a form of currency and a store of wealth for centuries. Despite the fact that gold is not essential for survival, its rarity and the difficulty of extracting it from the earth have led to its high price. Additionally, the widespread perception of gold as a safe haven investment during times of economic uncertainty has further driven up its price. As a result, although gold may not have an intrinsic value in terms of its usefulness for survival, its high price is a reflection of the economic value that has been assigned to it by the market.
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