For a metal to be deemed precocious - the reasons have as much as to do the economics, as they have to with chemistry. So the fist thing I would like to say is that like everything in this world only those things have value which we decide to give value to. Obviously our decision of considering gold worthy of being trusted as 'precious' has several reason. Gold has been deemed precious for the following reasons:
Gold is a rare metal. Humans desire that which is rare. In fact this law gives us the very bases of pricing of goods in market. But other elements in periodic table are rare too.
Some are gases/volatile/flammaable - thus difficult to capture and store.
Some are liquid and thus difficult to handle.
Some are poisonous or radioactive and thus harmful.
Some are so rare that we just don't have enough of it to make it work as money. Gold not too abundant or too rare.
Some are so reactive that they just wont stay pure.
GOLD - has none of that. Gold is rare in way that is useful to us.
Gold usually can occur in its pure form. It doesn't easily gets mixed with other elements and can stay relatively safe from the environment without corroding away.
3. Usefulness as Store of Value/Money:
The above properties of its special kind of rarity and purity makes it valuable. It rarity makes sure that there is only a limited supply available and thus prevent over inflation. Its purity(being a noble metal) makes sure that it is not easily corrupted (similar to counterfeit of fiat money).
Gold is easy to work with. You can make out if what you want - much easily than other metal. Thus it is easy to make coins and bars out of it. We can also easily makes jewellery out if it and thus we have its ornamental use
Gold has been established as a trusted form of money since ancient times. This means a lot more than we can imagine.
Gold has many properties of money. It is durable, portable, fungible, divisible, clearly distinguishable, malleable (coins can easily be minted from it) and scarce. It also has some degree of intrinsic value as a traditional raw material for jewelry and nowadays in electronics industry. Because of all those things, gold has had a status as money or the equivalent of money since the dawn of history. The intrinsic value of gold is much lower than its market value. You could say that the valuation of gold is a stable bubble and probably also the world's oldest.
It is to a great degree thick. Which means it is less demanding to convey and handle than a sack of rice or a barrel of oil. Truth be told, anyone could put their whole family's riches in a little sack and divert (in the midst of emergency, debacle or relocation).
It is very inactive and doesn't consume. Which means it doesn't lose esteem. Accordingly, ages could hand over their gold to their next ones. Would you be able to do that with paper or iron? Could your grandmother give her reserve funds in some disintegrated notes to you (that her extraordinary grandma gave)? Except if you are a philatelist or history understudies, those notes will have no worth to you.
It is anything but difficult to test virtue anyplace on the planet at just about zero cost. How simple is it to test an outside fake note? How simple is it to esteem land or precious stones?
The supply of gold is steady crosswise over hundreds of years. Unlikely to create new mines at any point in the near future. How simple is to print money and spoil esteem? How likely is to discover a more up to date dig for another metal? No legislature can shamelessly take your sparing's an incentive by expanding generation.
Gold has just a single review and hence single evaluating. Which means it is exceptionally fluid. If you somehow happened to exchange precious stones or oil, you need to manage bunch scope of evaluations and quality. Would you be able to get a similar incentive for your jewel ring if you somehow managed to offer it now at the value you got it?
Gold is perceived everywhere throughout the world. This implies adaptability and trust. No other material is this perceived over the world. Will your Yuans or Rupees or Reals work along these lines?
Not at all like silver or platinum, gold has next to no modern utilize (just around 100t yearly is utilized in ventures, for example, semiconductors). Along these lines, you are not taking endlessly a profitable modern item to exchange.