History shows that for a good while, aluminum was actually worth more than gold. Before the 1880s, aluminum was valued at over $1,000 per kilogram and was considered a luxurious precious metal. Even though aluminum is the most abundant element in the planet, it was extremely difficult and expensive to refine, which hampered mass production of the precious metal.
As a testament to its past prestige, aluminum bars were featured at the 1855 Exposition Universelle de Paris and in 1884, a 100-ounce pure aluminum capstone was set on the Washington Monument. The renowned Napoleon III of France is rumored to have owned a collection of aluminum wares, which were strictly reserved for the most esteemed guests only.
However, aluminum’s value dropped a thousand levels down to just $1 per kilogram by the 1890s. With improvements in the smelting processes, processing aluminum became easier, faster, and more cost-efficient. The precious metal became highly adaptable for industrial-scale production, which is why aluminum is just about everywhere these days, from wrapping up food to powering electrical lines.
Since aluminum is not a geological rarity, the improvements in technology resulted in its reduced value and even eliminated its status as a precious metal.
Why Is Gold More Valuable:
Society has definitely placed a lot of value on gold and for good reason too.
1. Gold as a choice for coinage:
According to sources, when earlier civilizations began to circulate coins for trade they had to decide on which precious metals to use. They needed to choose ones that make good stores of value. They considered noble metals, platinum, and palladium, as these are non-reactive and non-corrosive to other elements, but they are also too rare to make enough coins for circulation as well as too hard to smelt. Although there is an abundant supply of aluminum, it is a very light and flimsy metal, which does not make it ideal to use as a currency for trading.
A metal rare enough so that not everyone produces coins but also available enough to allow for commerce to take place was needed. These qualities were found in gold and silver, which possess the right elements for creating coins. It is easy to work with at relatively low temperatures, which makes it easy to shape and transform into a coin. It has a unique and beautiful color, which doesn’t corrode. Silver, unfortunately, tarnishes. Gold is much more stable and doesn’t lose value over time, which makes it ideal stores of value. Hence, we see the beginning of the Gold Standard.
2. Gold as a universally accepted currency:
Apart from being a beautiful and useful precious metal, gold is valued as a universally accepted form of currency that is easily traded for cash. Any form of physical gold can be exchanged for money, which makes it highly desirable. For those who wish to have their tangible assets liquidated, Gold Buyers Melbourne exchanges cash for gold Melbourne residents take to their shop.
3. Gold is resilient to the crisis:
There are many who invest in gold as a manner of wealth protection, which is a sound financial decision to make. While international political climates and economic crises influence the commodities market and affect the value of intangible assets, these rarely impact the gold market. In fact, gold tends to increase in value in times of inflation, which is why it is highly recommended for creating a diverse investment portfolio.
These are just a few reasons why gold is considered more valuable in comparison to aluminum and other precious metals. So, while aluminum has had its day in the sun, gold is still enjoying the limelight.