Is gold so valuable only because of history?

History is certainly one reason why gold is valuable. During the time of Christ, for example, an ounce of gold would buy a Roman citizen his toga (suit), a leather belt, and a pair of sandals.

 Today, one ounce will still buy a good suit, a leather belt, and a pair of shoes. How many stocks and bonds have that kind of long-term purchasing power?
 
But it’s more than history—there are four other core reasons gold is valuable.

First, it’s chemical properties are ideally suited for use as money and a store of value. For example, it doesn’t rust or tarnish, doesn’t need feeding or fertilizer, and is rare.

 Second, it is one of the most attractive elements to the human eye. An Egyptian Pharaoh thought it was just as beautiful and desirable as a bride does today.

Third, gold has no counterparty risk. If it doesn’t require the backing of any bank, government, or brokerage firm. And it’s never been defaulted on or gone to zero.

 Last, gold has financial advantages that most any other asset can’t deliver. For example, it’s liquid, portable, divisible, durable, consistent, value dense, and is one of the last forms of money that can be entirely confidential.