From atoms to empires: What makes gold so precious? Premium

Explore the science, history, and enduring value that make gold one of humanity's most precious metals.

Gold (Aurum or Au) is a chemical element on the periodic table, and a metal known for its bright yellow colour and shine. A natural occurrence in use since ancient times, it has been considered precious by people for a long time. And the reason for that lies in a unique alloy (mixture of metals) of science, history, and human belief.

Gold bars | Photo Credit: Getty Images/iStockphoto

There are various factors that make gold the precious metal it is. Let’s go through them.

Rarity: Gold is very hard to extract and produce, and occurs very rarely, only forming during neutron star collisions and supernovae (the colossal, luminous explosion of a star during its final evolutionary stages). This limited supply made it a precious metal, much like any limited edition goodies you might want to get your hands on.

Durability: Unlike other metals, gold doesn’t rust, corrode, or tarnish. At worst, it may lose its lustre, but that can be regained by polishing it. It is also highly malleable (can be bent without cracking) and ductile (can be stretched into thin wires without getting fractured). It is also non-reactive, remaining unresponsive to even water and air.

Economic safety: When currencies or stocks reduce in value, gold acts as a backup as it retains value, providing security during times of inflation and economic uncertainty. It can also be liquidated (converted to cash) easily.