From my understanding of history, for the most part the metal known as gold has always been seen as a sign of wealth and prosperity. Is there any practical or cultural reasoning for this, considering how it is not useful for construction or food, and can only really be used for aesthetic appeal?
I did not really find any specific explanation but I hope this might help you out. The earliest history of human interaction with gold is long lost to us, but its association with the gods, with immortality, and with wealth itself are common to many cultures throughout the world. Early civilizations equated gold with gods and rulers, and gold was sought in their name and dedicated to their glorification. Humans almost intuitively place a high value on gold, equating it with power, beauty, and the cultural elite.
hi! you may be interested in previous responses in the FAQ
There are five core reasons gold is valuable. First, it’s chemical properties are ideally suited for use as money and a store of value. For example, it doesn’t rust or tarnish, doesn’t need feeding or fertilizer, and is rare.
Second, it is one of the most attractive elements to the human eye. An Egyptian Pharaoh thought it was just as beautiful and desirable as a bride does today.
Third, its purchasing power has lasted literally throughout the decades. During the time of Christ, an ounce of gold would buy a Roman citizen his toga (suit), a leather belt, and a pair of sandals. Today, one ounce will still buy a good suit, a leather belt, and a pair of shoes.
Fourth, gold has no counterparty risk. It doesn’t require the backing of any bank, government, or brokerage firm. And it’s never been defaulted on or gone to zero. Last, gold has financial advantages that most any other asset can’t deliver. For example, it’s liquid, portable, divisible, durable, consistent, value dense, and is one of the last forms of money that can be entirely confidential.