The Research On The Investment Value Of Gold Based On The Intrinsic Properties Of Gold

Gold is a metal which is scarce,corrosion-resistance and ductile. Gold not only has the goods attribute but also has financial attribute. This paper bases on the intrinsic properties of gold,analyzes the relationship of the supply and demand,the financial attribute and the price,in order to explore a method of analysis on gold' s investment value.The growth of gold stock is slow.In the long run,the value of gold depends on the relationship of supply and demand.The purchasing power of gold remained stable while gold act as currency for hundreds of years.History has proved that gold can effectively ward off inflation.In contrast,credit currency cannot.In different periods the demand of gold is different.Accordingly, gold will have different price level,due to the strength of its goods attribute or financial attribute.The essence of gold price mechanism is that the price can balance the demand and supply of gold.The conclusion of this paper is that the value of gold comes from the intrinsic properties of its own.Gold is valuable because of its scarcity.Investment in gold is also significant for the Chinese government and ordinary investors.