The golden rule

Throughout the ages, gold has remained one of the most prized metals, in fact one of the most prized substances of all time.

This has lead to its playing a major role in the modern financial world as the very basis for some currencies, and as a stable haven from the volatility of more risky investments. At cashdoctors.com.au we want you to know as much as you can about everything that effects your finances, so we will try to explain the allure of gold.

Gold has for ages been a standard of beauty and value, but as a metal, only the most modern of things, the microchip, have really found a use for it. It is too soft, to malleable, heavy and hard to come by. Early man shouldn't have been as drawn to it as he was. Iron is stronger, bronze, or even copper hold better edges, and all of them are easier to find. So what drew man to it in the first place? It can only have been its inherent beauty.

Gold is a very pretty metal, and the very facets that render it less useful for practical purposes make it especially suited to ornamentation. Look to the pre-Columbian art. The rich detail of the idols and masks comes directly from gold's inherent properties. Gold has a very low melting point, so it is relatively easy to mold into a desired shape. Then after forming, its malleability makes it ideal for pounding and even carving into shape. For all this it is a final attribute that makes gold preferable for this kind of religious imagery. Purity. Gold won't tarnish or rust. This would be a fitting image for anyone wanting to say, this will last forever. For all this, its value still remains a mystery.

That falls into the simple rule of supply and demand. It isn't enough that people want something, or that there isn't much of it. What drives price up is when there are more people that want something than there is supply of it. This creates scarcity, and scarcity drives price.

Cashdoctors.com.au knows that more than just gold can be in short supply. That is why we've made it so easy to get to your money before payday, for those little emergencies that crop up. Just log onto cashdoctors.com.au and sign up for your Cash Doctors card. Then you are all set when you need a quick payday loan to get you over a little personal scarcity.

Through gold it is easier to understand the forces that drive our whole economy, because the rule of supply and demand applies to everything in an economy.

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