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Let’s Delve Into Gold!

 

To find out why Gold investments are a good addition to your portfolio, we must investigate its characteristics and the role it plays in various industries, thus being fundamental in the global economy.

Gold’s High Melting Point: A Key Factor for Precious Metal Investors

Scientific

 

The word originated from the Latin word Aurum meaning ‘shining dawn’. It is a good conductor of heat and electricity. Gold is virtually indestructible. It doesn’t rust, oxidize or react to most acids.The first gold coin dates back before 700 BC.

Gold is extremely malleable and ductile. One standard ounce (28.35 grams) can be hammered into a 100 sq. foot (10 x 10) sheet or stretched into a fine thread that would extend for 8 km while retaining its shape.

Symbol: Au

Atomic Number: 79

Melting Point: 1,064 °C

Abundance: .004 ppm in the earth’s crust

Weighting: 1 troy ounce (31.10 grams) vs standard ounce (28.35 grams)

Gold Ancestral & Historical Significance

 

Gold holds a rich history and a deep connection to human ancestry. Here’s a brief overview of its historical and ancestral significance:

Ancient Civilizations: Various ancient civilizations, including the Egyptians, Greeks, and Romans, treasured gold. They used it to craft intricate jewelry, coins, and decorative items, symbolizing power, wealth, and a divine connection.

Currency: For centuries, gold functioned as a form of currency, with widespread acceptance of gold coins and bars as a medium of exchange. The Gold Standard, which tied the value of a country’s currency to a specific quantity of gold, played a pivotal role in international finance until the 20th century.

Exploration and Colonization: The quest for gold played a significant role in exploration and colonization. Conquistadors sought gold in the Americas, leading to the colonization of regions like the Andes and California. The famous Gold Rushes of the 19th century, such as the California Gold Rush, drew people from around the world in search of fortune.

Cultural and Religious Rituals: Gold has played a significant role in various cultural and religious rituals spanning diverse cultures. It is frequently linked to concepts of divinity, purity, and spiritual importance. For instance, gold holds a prominent place in the religious ceremonies of Hinduism and Buddhism.

Adornment: People have used gold jewelry throughout history, not only as a symbol of wealth but also as a means of self-expression and identity. Gold jewelry frequently carries sentimental value and is handed down through generations.

Legacy and Heirlooms: Families have treasured gold artifacts and heirlooms for generations, signifying a link to their forebears and the safeguarding of cultural heritage.

Art and Craftsmanship: Artisans and craftsmen have employed gold to produce elaborate works of art, including jewelry, sculptures, and architectural embellishments. Its malleability and sheen make it a prized medium for artistic creativity.

In summary, gold’s history is intertwined with the rise and fall of civilizations, economic systems, and human aspirations. Its ancestral significance lies not only in its monetary value but also in its cultural, spiritual, and artistic roles throughout the ages.

Gold Investments

Economic

 

The average grade of gold in a mine is 1.01 gram per ton of ore. That’s the mass of a small paperclip.

Gold is priced in US$. Up more than 300% since 2008, it traded around $1600 per once in September of last year and in the early months of 2023 has traded as high as $1950.

The price of gold trades adversely against the US$. As the US$ drops in value (as traded against other currencies) the price of gold will rise.

Gold is considered a raw material or natural resource. Consequently, in an economic context, a raw material is a basic or crude substance that is extracted from the earth or naturally produced. It serves as a fundamental component used in the manufacturing of products or as a basis for the production of goods. Gold, in its natural form, extracted from mines or deposits, fits this definition perfectly. Moreover, it finds extensive utilization in various industries and applications:

Electronics:

Gold is used in the manufacturing of high-quality electronic components such as connectors and electrical contacts due to its excellent electrical conductivity and corrosion resistance.

Dentistry:

Gold is employed in dentistry to create dental restorations like crowns and bridges due to its biocompatibility and durability.

Electroplating:

It is used for electroplating electronic components and valuable objects to provide a protective layer and enhance their appearance.

Aerospace:

In the aerospace industry, gold finds extensive application in the production of crucial components. This is owing to its capacity to endure the harsh conditions of space and its exceptional electrical conductivity, particularly in communication and control systems.

Medicine:

Though to a lesser extent, gold is used in medicine in treatments for certain forms of cancer and autoimmune diseases.

Thermal Windows:

Ultra-thin gold is used in thermal windows in buildings and spacecraft to reflect infrared radiation and maintain a stable temperature inside.

Coatings:

Gold is used to coat surfaces of objects and scientific equipment as it is highly reflective in the infrared spectrum and provides precise reflectivity.

Sensors and Detectors:

In research and industry, gold is used in the manufacturing of sensitive sensors and detectors due to its electronic properties.

Welding and Reflow Soldering:

In the electronics industry, it is used in reflow soldering of components as it creates reliable and durable connections.

Nanotechnology:

Gold, in the form of nanoparticles, plays a pivotal role in scientific research and medical fields. It is employed for purposes such as drug delivery and the early detection of diseases.

These are just some examples of how gold is used in various industrial applications beyond its value as a precious metal. Its combination of physical and chemical properties makes it valuable in a wide range of technological and scientific applications.

What Is The Amount Of Gold Reserves Present In The World?

 

The amount of gold reserves present in the world varies over time due to mining activities, discoveries of new deposits, and changes in demand. Global gold reserves were estimated to be around 200,000 metric tons.

The US has the largest gold reserves in the world with 8133 metric tons. Second to Germany with 3,355.

Gold Production by Country in tons: China 380, Australia 320, Russia 300, USA 190.

Is Gold a Good Investment??

 

Gold has held a special place in the human imagination since the beginning of recorded time. From an investment perspective, gold is attractive because of its potential to remain strong in difficult financial environments and to hedge against inflationary declines in the value of fiat currencies. However, it’s crucial to assess your investment goals, risk tolerance, and the current market conditions before deciding to invest in silver. It’s also advisable to consult with a Prudential metals Group  advisor who can provide personalized guidance based on your financial situation and objectives.

key Points To Consider When Evaluating Gold As An Investment:

 

As we explore the realms of science and economics surrounding Gold, it becomes evident that this precious metal is much more than just a beautiful adornment. Its exceptional conductivity, historical significance, and economic value make it a captivating subject of study and investment. Here are some key points to consider when evaluating gold as an investment:

Diversification

Gold can serve as a valuable component of a diversified investment portfolio. It often acts as a hedge against inflation and currency devaluation, similar to other precious metals. Adding gold to your investment mix can help spread risk.

Store of Value

Gold has been recognized as a store of value for centuries. It tends to retain its worth over time, making it a potential safeguard during economic uncertainty.

Historical Performance

Gold has historically performed well during periods of economic turmoil and uncertainty. It can serve as a safe haven asset when traditional investments, like stocks and bonds, are underperforming.

Lack of Default Risk:

Unlike bonds or stocks issued by companies, gold doesn’t have credit risk or default risk. It’s a tangible asset that doesn’t rely on the financial health of an entity.

Liquidity

Gold is highly liquid and can be easily bought or sold in various forms, such as coins, bars, or exchange-traded funds (ETFs).

However, it’s important to consider some potential drawbacks:

 

Volatility:

Gold prices can be highly volatile. While this volatility can offer opportunities for profit, it also carries increased risk. Be prepared for price fluctuations if you invest in gold.

No Income:

Gold doesn’t generate income like dividends from stocks or interest from bonds. It relies on capital appreciation for potential returns.

Storage and Costs:

If you invest in physical gold, consider the costs associated with secure storage and insurance.

Market Timing:

The price of gold can be influenced by various factors, including geopolitical events and macroeconomic conditions. Timing your entry and exit from the market can be challenging.

Long-Term vs. Short-Term:

Your investment horizon matters. If you’re looking for short-term gains or trading opportunities, gold may not align with your goals.

More Amazing facts about gold (Au) you probably didn’t know

✅ Gold is alien. Nearly all the gold found in the world today didn’t originate on Earth. The gold we know today came from meteorites that bombarded Earth 200 million years after the planet formed…wow, pretty cool.

✅ Gold is naturally inside us. Trace amounts of gold are found near the heart, in our nail beds and in the receptors in our brain. On average a human weighing 150 lbs will have more than 0.2mg…deep down we all have a heart of gold.

✅ Pure gold isn’t toxic and passes straight through our digestive system. You can eat it in the form of gold leaf of glitter…wonder if its vegan.

✅ Only 50,000 tons of below-ground reserves remain in the world. Around 190,000 tons of gold has already been mined…get your gold reserves from PMG today.

✅ The oldest gold artifacts ever discovered were found in modern-day Bulgaria. They dated back to 4500BC making them more than 6000 years old…. and still shiny as the day they were made.

✅ Our beautiful blue oceans are full of gold. In fact, there is more than 20 million tons of the stuff worth around $771 trillion…problem is its so dilute that it cannot be extracted.

✅ Gold does not rust, corrode or decay. Unlike other commodities it does not get used up or consumed. It stays in the world.

Get Expert Guidance

Invest with confidence at Prudential Metals Group, the source for valuable information on buying gold bars, understanding the melting point, and setting up a Gold IRA.

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