All About Gold
How did Gold Come to be the Ultimate Store of Value Globally?
Gold is the oldest and the most prized of all the precious metals, and it has always been held in high regard even before it was used as currency.
It is hard to say when exactly Gold was discovered; there’s a lot of confusion surrounding dates and regions. Reporting and documentation have not always been what it is today, that’s for sure.
It can be said with certainty that Gold was discovered around the globe and deemed precious by all who found it. It would be a safe assumption that Gold has been around for several thousand years and has made a powerful impact on our advancement as a species.
In the earliest days, Gold was revered as a precious metal of the Gods and Rulers, and it was associated with wealth, beauty, and power.
From the ancient Romans, Egyptians, and Greeks, Gold has been held in high regard, and before being used as a currency, was used for jewellery, plates, cups, vases, and vessels, and of course, came with a certain status owning these things.
Fast forward to March 14th,1900, the gold standard was introduced. Making it law in the USA that only Gold was the legal basis for currency, and one American dollar was worth 1.5 grams of Gold.
The Gold Standard Was Abolished, But Gold Was Still In Demand
On August 15th, 1971, President Richard Nixon made an announcement that would forever change the American currency system. He announced that the current system was not working and immediately halted the convertibility, making Gold no longer redeemable for dollars. Two years later, in 1973, President Nixon scrapped the gold standard altogether.
Even though Gold no longer backed the American dollar, it was still as valuable as ever and just as in demand. Thanks to its various uses and unique physical properties, Gold still has many benefits in our society, such as:
1. Electronics. Gold is an excellent conductor for electricity, and it is commonly used in motherboards, microchips, and circuitry used in everyday devices. Gold does not rust, so it can last a long time and allow for a long life for your device. It’s most likely that the device you are reading this on has a small amount of Gold in it.
2. Dentistry. Gold is non-allergenic, making it perfect to use in someone’s mouth for an extended period. It is commonly used in dentistry for fillings, bridges, crowns, and grills.
3. Medical. Gold has many applications in the medical field. Since it is non-allergenic for humans, it is ideal as a plate for surgical instruments and life support devices. It is also commonly used in various areas of cancer screening, diagnosis, and treatment. There are many other areas of medicine that rely on Gold.
4. Awards and medals. Gold is still thought of as a metal of status and power, so it is used in trophies and medals. It is the highest of the awards or medals you can receive when competing in a competition of any kind, like the Olympics.
5. Jewellery. Gold is still a sign of wealth, power, and status, and the shiny yellow metal is still prevalent in the jewellery industry.
Types of Gold
Pure Gold is very malleable and is usually mixed with other metal alloys to achieve various strength levels. Depending on the metal alloy that the Gold is mixed with will determine the colour of the Gold. Some common shades of Gold are:
Yellow Gold – The most common and probably what you think of when you hear the word, Gold. Yellow Gold is naturally occurring and is Gold in its purest form, and it is mixed with various other metals such as silver, zinc, and copper to achieve a less malleable metal but still maintain the yellow colour.
Rose gold – This colour of Gold is achieved by using copper, and it is also sometimes called pink Gold or red Gold. The shade will vary drastically be depending on the amount of copper used in the blend.
Green Gold – Also known as Electrum, it is a mix of Gold, silver, and copper. Green Gold has quite a history and can be traced back to 860 BC.
Black Gold- Used most often in jewellery, black Gold is achieved by mixing cobalt with Gold or adding a sulphur-based compound to the Gold, and both methods are then allowed to oxidize to achieve the black colour.
Where is the gold market headed?
Gold may have taken a bit of a hit in 2021, ending off the year at $1,805 per ounce. The demand for Gold is still rampant and will likely take off in 2022 and over the coming years. The demand of the gold market is resilient, and it is a time-tested asset.
Gold is still an excellent way to diversify your portfolio, protect your wealth, and protect against rising inflation, it has a long history of being praised by humans as a precious metal. It has always held its value, and it has so many uses in our society, making it invaluable to us.
It is such a diverse metal that its uses are only going to increase in the future, making it even more valuable, and sought after.