Peter Bernstien has written a book "The Power Of Gold." that reportedly would give you the answer.

I suspect that gold, as the most maleable of metals, was found to be valuable as jewelry but not tuff enough for weaponry.  It was relatively common and relatively easy to find and ammass, making it a good choice for an agreed upon common measure for trade; international commerce and financing.

If I find the book, I'll give it a read and report back.

because we like it, a lot, oooh it's shiney!!  

it does have some limited practical uses, great conductor, most computers, phones, electronics in general have gold in them, just enough to get electrons moving not enough to get rich by recycling old electronic parts. it has some other uses too but mainly electrical stuff.  

but yeah, it's shiney and now people think it's worth something so therefor it is

Its been used as Money for centuries. Why is not an easy thing to answer. Its a commodity, prized by many. It, at least, has more appeal than a small rectangle of paper, said to be valuable, when that paper has no backing of any sort.
Gold doesnt rot or rust. It is useful in industry, in coloring glass & in electronics, tho silver has more uses in industry. It tarnishes, but, as far as I know, silver doesnt corrode away.
Each is considered money in most places.

The strangest currency Ive ever heard of, the longest lasting currency Im aware of, were the Tally Sticks.

I think rare materials are considered valuable by most folks, & gold isnt a real common element. If diamonds were common as sand, Ill bet they wouldnt sell for much.

Camel Dung could be a valuable item, used as money, if there were few camels & no other option for something to burn to cook & heat a small cave. If I owned the only camel in the village & there were no trees to burn, nothing to burn to make heat but poo,, Id be a rich man.

With enough gold, I can have as many bikes as Jay Lenno

if all the gold in the world was in one place it would cover a football field one foot thick,


Dude,, Ive heard that, too, but Im just not real sure thats correct. Im pretty sure Ive seen at least 6 inches worth of that on teeth, back when I was hangin out in the wrong places.

I remember Panama Gold!  Stuff was expensive but worth the price!

Gold was seen as part of the sun...and to have a piece of the sun was important to pre-historic folks.

and silver is part of the moon