Why gold is been expensive:- Gold is not a very unique name or metal for anyone on this earth because, in each part of the world, we can find it. Gold is just a natural product like other metal silver, zinc, copper, platinum, etc and it has its own mines from where we can extract gold.
As we are talking about the human race in the earth it only exists as the shiny and beautiful metal at first but with the time and concept has been a change. Now gold is not only like to be a simple metal with attractive looks but also used in every filed and as equal as the currency of the world.
Only gold is the alone factor of the world through which we can measure our world money. Gold is now days too much precious metal on earth after diamond and comparison to use gold has crossed every metal even diamond as well.
Each and every century, gold is one of the main factors to cause war as well, and in the past, only gold is comparable to money. As we know that those people who know about the metal have perfect knowledge that gold is not a rare one but it is very difficult to extract it in very large quantities.
There are only certain mines in some countries like Saudi Arabia, Qatar, etc and with the help of industrial technology than only they can extract it from very deep down the earth’s surface.
Well, the price of gold in Nepal has never been a fix forever, and neither it is determined by any individual and organization. It has a simple rule to fix its price and that depends upon the cost of taking it out from its source, then in the process of purifying and demand value of the customer in the market.
When we are talking about the process of getting pure 24k gold than it just takes time and a lot effort as well.
There were a lot reasons to have a high gold price in the market as some of them were as follows:
12 Major Reasons Why Is The Gold So Expensive In Nepal
High-quality gold remain forever
Let’s talk about its durability and it really has a lot of extra quality as well. Pure 24k gold is so high-quality gold that never rust and last forever. It is not like other metal silver, copper, or platinum which may rust someday. Pure gold is so soft but utterly beautiful compare to any other metal.
Gold is used for the technological sector
Whenever we are talking about gold, it has a very high-value market because of its different use in day to day life. Gold is not only used in jewelry shops but also use in electronics and other technology as well. Gold has a very unique character on its element and fits in everywhere.
High voltage transmitters are used in every corner of the world and the efficient flow of electrical copper wire with gold is almost necessary in every place.
Same like other technology industries also used gold wire to manufacture various thing and it has been a very good conductor of electricity throughout the world.
Gold is used to make for luxury items
Gold has a pure yellow color and many more with bright looks which make it one of the most luxury items of the world. Nepalese People love to wear gold jewelry for their perfect out suite and maintain high standards.
As a growing demand of the people in the world, gold jewelry alone stands for the 50% jewelry demand worldwide. Gold may be as much as we want under the earth’s crust but not outside on the surface. It is limited and very expensive in the market as per its demand.
Gold is used as coins
Gold coins were very famous from the very past history of humankind. Gold coins are very expensive and need a lot of hard work to give it real perfection. This one is also a very common factor to make gold expensive in the market.
Worldwide value
Gold is very expensive as we compare to any other metal or element because its value is very acceptable worldwide. People’s choice has changed a lot these days and they become more attracted to gold than any ornament.
Not only for jewelry but gold also considered as equal as money. Whenever we move or in any part of the world, gold is totally acceptable exchange of money which proves the value of pure gold and explains its worth.
Gold is also used for medicine
Pure natural 24k gold is also used for medicinal purposes from ancient times to this date. Gold contains various minerals as well and it has a lot of pure quality of nature which helps to heal a certain wound. As well as it is specially used for Ayurveda related to natural therapy for any disease.
Government and banks store gold
These days the most acceptable currency and wealth universally are gold. So, all the government and central banks have proper reserve gold in their store. Any economic crises in the future lead them to unbalance the economy of the country.
So, they have a huge reserve for gold because it is valuable as a dollar and has a sufficient level of standard to be a pillar of any country’s economy. We can also say as gold is the main economic pillar of most of the country.
Value from past time
Gold becomes more and more precious day by day but not a single value has ever decreased in ancient times as well. Our history was proof of the value of gold and they have a lot of stories upon gold as well.
Especially, royal palaces were so popular for gold and even Nepalese people carry gold coins instead of currency when they travel far long. From that day its value increase day by day and nowadays, it becomes so much expensive that a simple man cannot buy a little more of it.
Important for decoration
When huge complexes were made or huge companies were establishing than its owner most focus on decoration. The outer and inner decoration is mostly important to maintain its beauty and standard.
Not only the gold is mostly used for decoration of gumba and temples which symbolize the beauty and purity of that place. Almost every statue of god and goddess were made by gold in most of the huge temple and gold is used for decoration and art.
All our ancient generation has used gold for every decoration and art so that we got a chance to know its beauty.
Long-lasting effect
Gold is so pure and it lasts forever that’s the reason that we can see every beautiful statue and art of our history which is made of gold. Imagine life without gold that may be possible but it plays a very important role in our life indirectly.
All those decorated art and other things were still in existence and many of them even use for different things. We got a chance to learn our history lively and more it’s all because they are made with gold. Anything made from gold doesn’t decay or got rusted which help to remain all thing in its true form.
Extracting cost
Let’s see one of the main reasons behind the gold that has been expensive day by day. Gold can only be found inside the earth or 1km deep on the surface of the earth. To take it out in a huge amount, some of the advanced gold-digging technology was used in the process.
A lot of labor force is also used for this and after that gold needs to be purified through another process. That process is again melting and starts to give it a shape that is mostly required for jewelry. So, this entire need huge amount of wealth for any organization and even for the country.
So, when production cost becomes expensive than item price also get more expensive.
As per demand
Now, as we can see that not only gold but any popular item among the Nepalese people become so expensive day by day. When the demand of people increases than the price of the product also increase in the market.
So, gold starts to attract each and everyone over a decade and has gained a lot of popularity among Nepalese people. People find gold as long-lasting jewelry and can be sold within the same price as they have bought it.
While gold is a very phenomenal metal having so much unique property and it is healthy for people who wear it as well. One of the reasons that people wear gold because it believes that gold property heals various unseen diseases and claims the body.
In recent days, people have an increase in the population of the world increase day by day but gold cannot be taken out that much in huge quantity.
So, gold remains almost a little more and doesn’t have the capacity for all the people whereas, the demand of the people increases rapidly as population overgrowth. Nepali People start to do a competition to buy gold which is the major reason as well for the hick in the price of the gold day by day.
Looking at the other elements like aluminum, copper, and silver are likely to be more found on the surface of the earth. They don’t have much market value and they are cheaper than gold as well.
Well, anyone buys 1 tola gold and they start to wear it daily than even a decade may go but it remains constant. The weight of the gold never decreases or it remains the same forever so that it is so valuable than any other metal found on earth.
There were different varieties of gold found in the world with different colors. Each type of color determines the quality and presence of purity of gold.
Yellow gold is more expensive than any other gold because it is almost 24k gold which is the purest form of gold on earth. Gold becomes expensive day by day and it’s not like all gold becomes expensive or out of price range.
Gold is also a safe asset of all time and even because of its popularity, people smuggle gold from one country to another which is also known as black marketing.
As we look more closely at the business, gold also plays a more vital role as revenue and the stock market. As per the 2019 database of a business insider, gold has increased rapidly as the country also imports more gold and its consumption also has increased.
At last, we need to know that there were some main countries which supply enough gold worldwide. Gold selling is the main income of those countries and they balance the outgoing gold in the world as well.
So, as per the one of the top article, whenever gold start to see more than consumption in the market than those countries stop supplement of gold on the outer market.
Because gold prices may decrease rapidly and their income source also starts to decline which may lead to economic crises in the near future. So, those countries always have all the data that how much gold need to supply and keep balancing the business of gold.
We can also see that those countries were one of the finest and richest counties in the world. People living so luxurious life in those countries due to the gold business and that’s the main reason that gold prices almost never decrease in our market.
Even in the near future, it may keep rising because right now yellow become too expensive for normal people to pay. It may be true that yellow gold can extract from the bank of rivers and streams, but it is just in a small amount that nothing can be gain from them as a country.
Some poor Nepali people used to survive from that gold by searching whole and sell them in the market. Gold added value in human life and it is always precious jewelry among us which gain popularity from very old days.