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Original scientific paper

Gold — Why is it Valuable?

Predrag Haramija orcid id orcid.org/0000-0002-1675-4996 ; Zagrebačka škola ekonomije i menagementa, Zagreb, Hrvatska
Đuro Njavro ; Zagrebačka škola ekonomije i menagementa, Zagreb, Hrvatska


Full text: croatian PDF 223 Kb

page 459-476

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Abstract

The paper explores causes determining the value of gold and the very rapid growth of its price today. We distinguish seven major forces: physical and chemical features, industrial application, supply and demand, use of gold as currency or backing for currency, or rather the relationship between the value of currency and gold, the
symbolic meaning of gold and public opinion. Furthermore, the paper establishes which of these are more crucial and which are less so. We come to an understanding of the importance lent to the symbolic meaning of gold, that is the perception of gold as a symbol of permanent value. Also important is public opinion, or rather
expectations of the public which, in an environment of distrust in financial institutions, seeks permanent values. Since the departure from a gold standard, the value of almost all currencies is constantly declining, while the price of gold increases. As seen through traditional economic models (supply and demand law) the price
of gold, considering the larger total quantity of gold in the world (improved exploitation of mines, etc.), should not have gone up. The very rapid growth in the price of gold in the past several years first of all points to a loss of confidence in money, that is a growing distrust in economic and financial institutions. Money (without a
gold backing) in a crisis situation ceases to be a symbol of value, and the perception of gold as a symbol of permanent value increases. Taking into account the great importance of the symbolic meaning of gold, that is the subconscious perception of gold as a symbol of value, it is no wonder that 80% of those surveyed are of the opinion
that gold is worth even more than its present (highest until now) market price.

Keywords

gold, value, money, public opinion, perception, promotion, market, symbolic meaning

Hrčak ID:

91247

URI

https://hrcak.srce.hr/91247

Article data in other languages: croatian

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