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True it is rare - but that is not enough to give it value. It has to be rare and well known. So first and foremost, it IS found in nature - on Earth. Rather than, say, aluminum (plenty of aluminum oxide, just not the metal) or zinc. Something can't have had any value to the ancients if it didn't exist. That is why there is a historical precedent. But it is the only metal they did have access to that didn't tarnish. Even silver tarnishes in sulpherous environments. A piece of iron or copper would be pretty nasty after a short time. Its durability coupled with the fact that there wasn't a LOT of it made it good as a monetary standard. Now that we have lots of metals that really are quite resistant to tarnishing, that are far cheaper, really its historical precedent is all that bolsters its value. Because it really doesn't have many special uses. You can plate electrical contacts with gold. Yippie. But why use gold when you can use tin or antimony or nickel. You can plate tools with it. But a nickel plated screwdriver, or galvanized (zinc plated) sheet metal is probably going to never tarnish either. It's just the same from a practical standpoint. The only thing it's got is ductility and malleability, and that's really not enough. The reason it has value today is NOT because it is rare and useful, because it really isn't impressively useful. The reason it's valuable today is becuase it is the long held monetary standard and the most powerful people and organizations have huge quantities stockpiled, and it stays valuable because it is in their best interests for it to stay valuable and because they are powerful. Just like diamonds. Why is it so treasured in jewelry? For a reason not too far from propaganda.
It is desirable for its rarity, and the fact that it does not tarnish or rust. If something desirable is also rare, it becomes valuable. This is simple supply and demand curves.
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