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Gold is not a practical material to make solid objects from. They won't tarnish, but they will not last either. The first and second place medals are solid silver, while the first place medal is plated with at least six grams of gold. This year's medals also use Jade in their construction and are quite special.
The host nation has some flexibility in how the Olympic medals are made and their materials, without strict standards of the IOC (International Olympic Committee). Here's a brief article that talks about this year's medals.
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