Gold is the most popular precious metal with chemical symbol of Au, and atomic number of 79. Like silver it has multifarious usage consisting of coinage and jewelry. It appears in different forms like: nuggets, dust, veins, and alluvial deposits. It requires a boiling point of 5173 °f to melt gold and addition of alloys like copper, nickel, etc. to calcify into physical structures like bullion. It can be used as a medium of stored value. Therefore, due to this importance and gold standards, gold provides a basis for monetary policies and is connected to different imagery presentation and beliefs. Gold has diverse usage and investment happens to be a major relevance of gold.
Gold and its usage
- Gold is used as a monetary exchange. Used globally as an avenue of monetary exchange by issuance and identification of gold coins.
- Gold can also be stored in the form of gold bars and bullion and used as an hedge against price fluctuations.
- Jewelry: Due to the malleability of gold, it is often solidified using compound of alloys to change its hardness, melting point, color and ductility – capable of being formed into wire and other materials for onward use as jewelries.
- Medicine: Gold is beautiful, and the ancient man thought so too, and to emphasis their respect they believed that something so beautiful and rare should have relevance to man’s health. This believe in modern times is given a push as injectable gold is confirmed to assist in reducing pain, tuberculosis, and rheumatoid arthritis. Add to this, alloys of gold are also confirmed to be useful in restoration of tooth crowns and bridges.
- Nutrition: Au or gold can be used in food and drinks. The raw form of gold is used in drinks and design ingredients.
The Main Reason One Should Invest in Gold
The above are some of the uses of gold and it is by no means exhaustive. Among the reasons mentioned, investment is the most popular. Why? As already mentioned, gold is used as a means of hedging inflation. With the gradual decline in the world economy that has overwhelmed even the strongest financial organization, one is therefore pushed to embrace the opportunity available in using gold and other precious metals to hedge inflation. What this means is that an individual can put his or her money on gold as store away wealth for a period of time without fear of liquidation, to ward off possible states of bankruptcy. For example, in the past 170 years the price of gold has been increasing; in 1980 when the price of gold was $612/oz, an investment of $20,000 will yield a whooping 225% returns on investment if it was sold this past October’s price of $1379/oz. If this is not a good enough reason to invest in gold, then what is?
Like silver, investing in gold is a smart choice that will surely keep inflation away.