Why is Gold so valuable ? I don't get it ?

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 valuation

It is universally accepted.
Neither of these things is true, though.

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?

The problem with real property and Greek government bonds isn’t their lack of liquidity. It’s their price.

At current prices, one of those gold bullion bar things is worth a bit over £450,000.

Blimey. When I was a kid, a friend’s dad used to have gold and silver bullion just stacked up on the floor around his house.

It was bloody heavy is all I remember and based on those prices, worth considerably more than their relatively modest house.