Gold has been valued by humans for thousands of years. But have you ever wondered why gold and not rocks? The concept of value starts with a bunch of people agreeing a thing has value. Gold is different from other metals in that it has a beautiful color and luster. It is rare enough that it is not readily available like rocks. It is also easily extracted from the Earth but solid enough to hold together. There is currently $8.14 trillion worth of gold above ground on Earth.
Interestingly enough, though, the gold standard was adopted relatively late in human history and it only held out for a little over 150 years. We not use the FIAT system, which places value in currency and a country’s perceived economic strength. It, too, is subjective. When a country’s economic stability is called into question, their financial strength is devalued on the world financial market.