It's circular but still a correct reason. The reason people value gold is because you can sell it for a high price. Why can you sell it for a high price? because whoever receives it can also sell it for a high price.

Note that this isn't true for most things. If I buy for instance a car I don't expect to be able to sell it again for the same price.

So I suppose another way to word it is "Gold doesn't depreciate"