why gold is too expensive
Answers
Answer:
Explanation:
Gold is relatively rare in the earth's crust, and particularly because of its value in making jewelry, it has always been worth a lot of money. Aluminum is very common, and is nowadays, easily formed as the pure metal, so it is not very cheap.
Answer:
Gold is relatively rare in the earth's crust, and particularly because of its value in making jewelry, it has always been worth a lot of money. Aluminum is very common, and is nowadays, easily formed as the pure metal, so it is not very cheap.
Explanation:
Another reason due to which gold works well in terms of value is because gold does not readily oxidize thus, it maintains a constant weight. Other metals, such as iron rusts and copper gets oxidized. Here gold is rare, has a fairly stable volume and doesn't rust away.
Since international gold is dollar denominated, any weakness in the dollar pushes up gold prices and vice versa. The inverse relationship is because firstly, a falling dollar increases the value of currencies of other countries. This increases the demand for commodities including gold. It also increases the prices.