Why is gold valuable? This question sounds simple, but the underlying logic is constantly changing.

Human consensus on gold is not fixed. It evolves with the times. So what exactly influences this consensus? It boils down to three dimensions—monetary attributes, financial functions, and hedging demand.

Let's start with the monetary aspect.

Today, money can be divided into three categories: physical currency, credit currency, and virtual currency. Which do we use daily? Mostly credit currency. What is credit currency? It’s paper money issued by governments backed by taxes. The government says this piece of paper is worth 100 units, and if the people agree, then it’s worth 100 units—that’s the power of trust.

From this perspective, gold is also a product of consensus. However, its basis of consensus is older and more primitive. Before the emergence of credit currency, gold gained global acceptance because of its scarcity, ease of preservation, and divisibility. And now? The value of gold is constantly being redefined.

This is why studying the logic of gold is essentially studying the evolution of human perceptions of value.