It’s hard to really put your finger on what gold “is” in the modern world. That, in part is what makes it so fascinating. And it’s why gold prices always march to a slightly different drummer.
Is gold money? In a way, yes. For thousands of years gold has been used and exchanged as a measure of value or money. And even today, with no formal link between gold and modern, fiat currencies, there is an undeniable connection between the two. For example, when the US dollar value goes up, gold prices tend to go down, and vice versa.
Is gold a commodity? Yes it is. Even if that isn’t all that it is. It’s a precious metal, mined from the earth, like silver, copper or iron. And at times you can see gold prices fluctuating in sync with other commodities.
What makes gold so different, as a commodity and a metal, is that it has very few industrial uses. Silver, for example, is used in much greater quantities in the manufacturing of goods.
Is gold simply jewelry? Well, it is certainly used a lot in jewelry. Particularly in the Middle East and India. In fact, demand for gold in India prior to the traditional wedding season can have a measurable impact on gold prices worldwide.
In other words, gold is delightfully complex in how it is viewed and valued.
But one way or another, it is and always has been a reliable way in which to store wealth.
This is why central banks maintain reserves of physical gold bars.
And why individuals own gold coins and bars.
Gold is and always will be valuable.