Gold is relatively useless and unexciting compared to the other precious metals, and somehow it commands such sky-high prices. Some people argue that it has little or no intrinsic value; others say it is a relic from the barbarian age, which does not hold any monetary qualities like it did in the past.
They believe that paper money is the widely accepted currency in the modern financial environment and that gold is only a material to make jewelry.
On the other hand, some believe that gold is an asset that holds precious intrinsic qualities, making them unique and vital for investors to own in their diversified portfolios. Barring currency, gold has been the other primary indicator for the measurement of wealth.
It is so precious that in the earlier years, people went to war over it. This precious natural metal has been able to fascinate people and maintain its relevance over the years. You can check through the Birch Gold review to learn about the best investment practices for precious metals.
A Brief History of This Precious Metal
Different economies have held ingot in such high regard. Even when mining this metal did not have the required workplace technologies and safety regulations that we enjoy today with the modern industries, mines were present in different countries.
Throughout history, pirates, monarchs, and merchants were constantly searching for the next source of ingot, even if they had to get it through colonizing entire continents, heavy taxes, or even armed robbery.
Some minerals are more valuable than bullion in the world today, but none comes close when it comes to its prestige, aesthetic value, and versatility. Platinum, for instance, is more expensive but can only boast very few industrial uses. It may look like silver to a novice, but most people will opt for a gold watch instead of one made with platinum.
Some say its captivating glow has been the leading cause of trade blockades, wars, and the most eventful betrayals in the history of mankind. If we were to discuss all these, it would take a whole book to explain just what bullion has been able to do to humanity as a whole. This link https://www.investopedia.com/articles/basics/09/precious-metals-gold-silver-platinum.asp has more on the benefits of precious metal investments in today’s society.
Before we continue, let us go back to that secondary school chemistry class you may have skipped or forgotten about. Are you ready for that?
Some Facts and Properties of Gold
This precious metal’s chemical symbol is AU. It can be found in alluvial deposits and mineral veins all around the world. It can be gotten as a by-product of metals such as lead and copper. Being soft to the touch and having a satisfying weight, ingot boasts some unique characteristics compared to the other precious metals, predominantly its resilience and indestructible nature.
Due to its chemically inactive nature, it is resistant and anti-corrosive. This simply means that it can remain in its natural state for hundreds and thousands of years. This everlasting ability means it may take unworldly forces to be formed.
Theorists and scientists believe that gold was not extracted from the earth’s crust but was created due to colliding neutron stars or exploding supernovas.
It is a great electrical and thermal conductor. It is also ductile and malleable, giving it the unique ability to stretch without breaking and be drawn into sheets without cracks. Its softness allows it to be alloyed with other metals like copper and silver to increase its strength. Its purity levels are measured in carats.
A 24-carat means that it is a hundred percent pure gold, while an 18-carat means that it is an alloy of gold and silver in specific parts. Now, the main question;
Why is Gold So Valuable in the World Today?
The value of gold has been ingrained in the mind of members of society for thousands of years, its importance in forging the first coinage the world saw gave it that unique role that made it a backbone of the world’s markets.
As it became more and more integrated into global currencies, countries began to support their monies with the sheer amount of gold they could produce. People in the earlier age had mints that were homemade where they were able to mark their bullion. This led to several complications, making it more challenging to be used as a means of legal tender.
Original payments systems required only physical units to be exchanged between merchants and traders, and precious metals were the best bet. Bullion quickly became the choice for governments to make currency.
Its qualities and characteristics like low melting point, ductility, malleability, unique shine and color, and the fact that it was not easily tarnished gave it an edge over most metals. Its rarity also gave confidence because people were safe in knowing that it could not be quickly evaluated.
In the world today, bullion plays some other roles, making it more valuable. It is now essential in financial and forex markets. In fact, to most investors, it is a haven asset that can retain its value even amid economic and financial troubles.
It has also been seen as a form of reserve currency and has been widely recognized as an asset of value. We should not forget its various uses in the world of fashion and industrial applications.
Take Away
Gold is precious in different sectors and for several reasons; Depending on what you want; you can always acquire it to suit your needs. If you are an investor, acquiring it for the long term might turn out to be beneficial. This page here has tips for keeping gold for a long time.
If you are an industry, the importance of bullion in industrial applications cannot be overemphasized. Should we talk about fashion? Now you can see; Gold is valuable, hence the name “Precious Metal.”
