Exploring Gold's Demand and Value in a Speculative Context

Gold's demand is primarily driven by two major factors: jewelry fabrication and industrial usage, which together account for around half of total demand. The remaining demand stems from monetary sources like ETFs, bullion coins, and central bank purchases. Particularly in regions like India, gold is valued for its ability to preserve wealth over time, adding a layer of social significance in the form of gifting. This cultural aspect accentuates its demand, as it intertwines both emotional and economic values. The perception that gold holds its value better than alternatives, like silver, contributes to its attractiveness, leading to speculation about its potential re-monetization. This perspective frames gold's value largely as a speculation on its future monetary status, prompting comparisons with cryptocurrencies like Bitcoin. Both mediums are perceived similarly in terms of their speculative nature, raising questions about their potential re-monetization and valuation in times of economic uncertainty. The discourse reveals that while gold has inherent physical limitations, its appeal as a storied value makes it a pivotal asset in both personal investment and socio-cultural contexts.