Report Gold in Gold and other precious metals Posted August 18, 2007 so what is underpinning the value of gold? nothing! it is pure speculation and the believe that it will be redeemable in services and goods at a later date, sounds very fiat to me. Basic economic laws of supply and demand underpin the value of gold. Scarcity gives gold a high value. A medium of exchange (money) can be defined as the most marketable commodity. To be widely marketable, a medium of exchange should possess the following characteristics: (1) transportability, (2) divisibility, (3) high market value in relation to volume and weight, (4) recognizability, (5) resistance to counterfeiting.