Because it possesses all the monetary properties that the market demands: it is divisible, portable, recognizable and, most importantly, scarce — making it a stable store of value. It is all things the market needs good money to be and has been recognized as such throughout history. Gold rose to nearly $1800 an ounce after the Fed’s most recent round of quantitative easing because the people know that gold is money when fiat money fails. Source:wealthydaily.com
