Tuesday, November 16, 2010

Golden people



Recently I was required to purchase some gold. The price of gold sent me a shock. Gold is neither used in any industrial manufacturing like iron, alimuniume, copper etc. Its just used in jewellery then why is it so highly priced. And why is it considered a better standard in trade as compared to diamond.

Gold is inflation proof:
A little bit of googling told me that 200 gms of gold would have bought me a well built horse some 2000 years ago. And with same amount of gold I can get a nice horse even today. Similarly, to get a nice outfit a gentleman required 10 gms of gold some 500 years ago, and today also its almost same. Point is "gold is inflation proof".
One can argue that if Gold preserved its value across 2000 years then the horse & cloth too preserved its value as by selling a horse you can expect 200 grams of gold anytime. The catch here is gold is immortal but the horse is not. The clothes go out of fashion, get weared and teared.

Gold is trade standard:
Ok agreed that horse is mortal, but why diamond is not as standard as gold?
Gold is maleable and ductile. It can be beaten into thin sheet, molten into wires or shaped as desired. Two smaller pieces of gold can be combined to form a bigger one. Diamond no doubt is valueable, but it can't be shaped as per desire. Once cut, its size can only be reduced further. You cannot club two diamond to form one. The shape in which a diamond is cut may not be liked by other person, other culture or era. So diamon is not as good of standard as gold.

Gold maintains it purity:
Fine agreed that gold has good reasons to be standard item as compared to diamond. But why not copper, iron or aliminuim. These metal are maleable and ductiles as well.
Now this is a good question, however I have an explaination for that too. Iron rusts, copper forms oxide and alimunium readily reacts with other elements. Even though gold can embed wide range of things into it, from diamond to normal stones, Gold is inert. It doesn't react/combine with other elements.It maintains its purity and its shine always.

Gold is rare:
And last but not the least, it is rarer than iron, copper or alimunium. So costly than any of them. Still it is abundant enough to be possessed by average person, which makes it a standard metal.

Gold is valued by women:
If none of the above point convince you then simply know that golden jewellery are close to women's heart. While men may value machines, land, vehicles, etc women values gold. The valuable of women is more valuable than the valuable of men. Cheers for women and :( for men.

Okay okay, good analysis of gold, what to do with it now? Nothing, just apply these properties to know which people are valued more?
1> The people who are maleable & ductile , i.e. can mold themselves according to need of hour.
2> The people who can go well with gem (diamond) as well as with unskilled(stone) person
3> The people who can maintain their purity and brilliance
4> The peoople who are dear to one who has power to decide value

The gold goes through high temprature to become valueable. So if you are going through a tough time, you are in the process of becoming valuable. Just preserve your brilliance, purity, maleability, ductility & amicability and you will be gold to everyone.

3 comments:

  1. Superb analysis!!! One twist to the analysis, if i buy a mare and a horse for 400 gm of horse, after 500 years i may have hundred units of cavalry by now!!! (not me, but some of my descendants)

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    1. Indeed a good twist. And I would point that you are ignoring the laws of limit... population of any species grows to a limit and then stabilizes.. in cases of horses I guess natural stabilization has already happened. If you talk about breeding in protected environment, then the supply of horses will become abundant(against the point of rareness), and its price will decline automatically inversely proportional to change in the population...

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