During the 1800s, the best graphite in the world came from China. American pencil makers wanted a special way to tell people that their pencils contained Chinese graphite.
In China, the color yellow is associated with royalty and respect. American pencil manufacturers began painting their pencils bright yellow to communicate this "regal" feeling and association with China.
Now, that is just the way pencils are made, pencil manufactures stick to using the color yellow for the pencil.
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