More than any other metal, gold has its own rare history and place in the world. While most of us may think of gold as expensive jewellery, it’s so much more than that. Historically, gold was used in the ornaments made for royalty or in trophies to the victors of competitions. In modern times, gold is used in electronics, medical devices, cars, as well as gold stock notes, where a given note equals a set amount of gold. But why is gold so valuable and different from other investments?
The Reasons Gold is So Valuable
- Besides silver and copper, gold is the only metal that is found in its natural and elemental form. In addition, gold is a dense and malleable metal, meaning it can easily be shaped into other forms. For example, one gram of gold can be shaped into a thin layer of several feet. In addition, gold doesn’t tarnish like many other metals, making gold jewellery more valuable since it won’t lose its luster.
- Gold is also a colourful metal, getting its symbol Au from the Greek work, aurum, which means a ray of sunshine. Therefore, gold is referring to the colour, and is in fact the only metal of that colour.
- Gold is extremely rare, so much so that for every 20 tons of geological rock found, truckers find only about 20 grams of gold. Simply put, the entire planet only has around 165, 000 tonnes of gold, which is about the same as a single gold cube the size of a tennis court.
- While gold doesn’t pay dividends, it does back currencies if stored properly. This is why investors pay top dollar to store their gold properly in a locked safe.
- While gold can’t change the influx of inflation, it does help with currency devaluations, especially with large purchases like buying a house. Back in the 1970s, you could buy a house in the United States for under $35,000. Nowadays, no matter what part of the country you live, that would barely be a down payment. To put in better perspective, in the 1970s, 700 ounces of gold equalled $25,000 which if it was saved could buy an almost $1 million dollar house today. This shows the importance of having part of your savings and investment in gold.
Since the early days gold has been used to decorate ancient tombs and temples, as well as to serve as ornaments on royalty crowns. Gold has always been a status symbol, whether as a medal of achievement or the new gold mirror finish Mercedes Benz, the first gold car.