The value of gold is simple.
It isn't shares or bonds or property. So people run to it when those look dodgy.
Its supply is well controlled so it is unlikey to be diluted by quantative easing.
Unlike art or cars or fine wine there are no aesthetic judgements involved in its valuation
It is universally accepted.
And the current high price is not a good sign for the world economy.
I used to have 14oz. Sold em int the early 1980s.
Yes gold is having a bubble if you like (hit $1900 an ounce!),however,unlike all the things our pensions are invested in, it isn't going down the swanny anytime soon, and if it does drop, it won't drop to almost nothing, unlike RBS shares!
Financial advisors never recommend buying gold, the problem is they don't get any commission on it..!
My missus got a lump sum back in March (early retirement)If I'd had my way, it would have gone into gold and the value would have gone up by 50%, instead we got an advisor in: "playing for the long game" and the money is safely invested where it will be lucky to make 15% in 10 years...but at least the advisor and fund managers will make a mint out of us 
I don't understand. Why aren't some other useless but lustrous rare metals valuable? Oh they are.Rarity has value.
the 10 year spot price graph for tin closely mimics that of gold (in trend if not value) but yearly production is measured in millions of tonnes so you could invest in tonnes not ounce's of metal and still be open to big gains or losses.
It's expensive so rich people can let everyone know they are rich. It isnt actually very nice but everyone knows somenone wearing gold must be well off. A bit like driving a BMW.
images by ciderinsport, on Flickr
My kind of Gold 
The MOST valuble 
It's expensive so rich people can let everyone know they are rich. It isnt actually very nice but everyone knows somenone wearing gold must be well off. A bit like driving a BMW.
really? most of the people i see wearing lots of gold are chavs.
About 3.5 Olympic pools full mined in all human history actually. Plenty more out there but somewhat harder to reach than oil etc.
Global annual production would fit into a volume roughly 5m by 5m by 5m - which is about the same as two standard 40 foot shipping containers. It's very rare, and very useful.
I remember one advert showing a block of gold just fitting under the eiffel tower. Something like this.
And that's advert so you know it's the truth.
It is sent into outer space to protect our space vehicles. When one of of them eventually crashes into or is detected by another "advanced" civilization they will think what abundance of this rare substance we must have to send it into outer space, therefore stupid, and therefore must be destroyed! Or they will be thick, and just go "mmm, shiny!..". or maybe it is a universal concrete type subtstance, kinda useful and all over the place and other planets are all gold and boring grey substances are a tiny anomaly which are revered.
why so expensive?: its rare but in sufficient quantity that it can be mined
why so rare?: it can only be made in the dying seconds of a supernova as elements are fused together (same as pretty much everything else in the universe)and then ejected into space
Unlike art or cars or fine wine there are no aesthetic judgements involved in its valuationIt is universally accepted.
1) All of gold jewellery (which is still a fair chunk of production) and a fair chunk of pseudo-investment grade commemorative gold (which is a big chunk of US conspiracy theory investment) involves aesthetic judgements
2) It's not universally accepted. It's crap as a medium of exchange.
one of the other things with gold is that it can't (afaik) be destroyed. Over time it won't decay, or oxidise, it'll just stay as gold. Handy
Konabunny
Gold jewellery isn't what I'd be buying usually as an investment is it?
And gold does have a tangible quality to it which - rightly or wrongly - inspires trust in those who buy it. Not something you would rock up to the bank with - but easier to exchange than property or Greek Government bonds?
really? most of the people i see wearing lots of gold are chavs.
That says more about the places you hang around than it does about rich people and their accoutrements 
Have a read of this:
http://www.economist.com/blogs/freeexchange/2011/07/money
easier to exchange than property or Greek Government bonds?
At current prices, one of those gold bullion bar things is worth a bit over £450,000.
It was bloody heavy is all I remember and based on those prices, worth considerably more than their relatively modest house.
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