It isn't though.  Gold is a focus.  So is Silver though.

They are because they are essentially the most eaisly attainable/valuable matrieals.

Also... i'd argue that gold has more real value then real estate.

5 pounds of gold in LA, 5 pounds of gold in Detroit.  It's more or less worth the same.

Real Estate?  Good luck giving away real estate in Detroit. 

I think since gold has been mined for thousands of years, most of the quantity that could be extracted is already out there and has been for a long time. Thus it's intrinsic value is less likely to change over time. Ideally less than 10% over a century or so and much better than even the most stable fiat currencies.

Does a piece of paper with an old lady print on it is magic?

Gold has value in that it's a tool to fight inflation. It's really no different than owning Picasso paintings or other valuable rare items, which are only valuable because people are willing to pay a lot of money for them. It's just that Gold is the standard which all countries and cultures have valued since before time. It holds very little real value.

True, but lead is usually cheaper ;)

Gold is a material that has been valued by humans over history, because it's scarce, nontoxic, and nonreactive (it doesn't degrade or decompose). Its stability makes it an excellent standard to base value of other goods on, and its aesthetics only increases that notion.

The fact that it's traded as a commodity today doesn't change that. Fluctuations in the currency value of an ounce of gold doesn't make gold seem unstable. Quite the opposite, it makes the printed pieces of paper we call currency today look all the more unstable.

Note, when I say real estate, i mean property with some value to do something constructive.  Gold has little intrinsic value at this point.  It makes a near perfect metal to give away because of its attributes though.  But, like all currency, it depends upon people wanting it.  I am of the belief the perfect currency is something with no intrinsic value (so it doesn't get consumed or used) BUT everyone wants?  Think for a minute how the heck something with no intrinsic value is something that everyone wants.  That attribute shows up heavily in bubble situations.

It does make the whole concept of the gold standard seem rather silly, given that its only advantage over fiat currency is that a country has to tweak its balance of trade in order to mess with its currency values, rather than just ordering money printed or buying up a hell of a lot of assets to alter supply. But the underlying idea is still about arbitrarily assigning value to something.

Granted, gold is also a very useful metal, similar to Platinum or the Rare Earths.

Everything goes up and down in value. What makes gold a smart investment is that in the long run it always goes up or hold it's value. A dip now will be followed by another spike. That's the magic of gold.

It does not tarnish, it is an excellent conducter of electricity, it has anti-microbial properties, and it is finite.