Gold has been a valuable commodity for centuries, and its brilliant and metallic qualities, relative scarcity, and difficulty of mining have only increased its value. Cash, on the other hand, may not be as efficient in storing wealth due to low interest rates and inflation. Gold is also divisible, meaning it can be divided into smaller pieces to serve as a medium of exchange for smaller objects. People have made gold valuable due to its psychology of accumulating wealth, tangible assets, and precious metals.
Gold does not dissipate into the atmosphere, does not burst into flames, and does not poison or radiate the support. It is rare enough to make overproduction difficult and malleable to mint coins, bars and bricks. Gold's performance as a standard of stable value has been exemplary, much better than one might rationally expect. The gold standard made possible extraordinary stability of bond yields during the 19th century, which have never been replicated in fiat currencies.
