I hear some economics arguing that currency should be pegged to gold as a way of ensuring that its value isn’t arbitrary / volatile but I don’t understand how this would solve the problem. I understand that gold is a scarce resource that is difficult to mine but is it this alone that gives it intrinsic value ?
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Other than the basics like scarcity, aesthetics, etc that have already been covered, I have heard speculation that the reason gold is of such special history importance, even among other precious metals, is its chemically unreactive nature.
People have always been attracted to the idea they could make a statue out of gold and, other than dust and dirt getting caked on, it will look exactly like the day it was made in 500 years.
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