There are many amazing facts about gold. We have produced this fun article to investigate just fifteen of them. We hope you enjoy reading this article and learning about these fascinating facts relating to gold.
1. Experts believe that approximately 80% of the earth’s gold is buried underground
According to a study carried out by Bernard Wood of Macquarie University in Australia, there is so much gold inside the Earth’s core, that if it were all to be mined and deposited on the Earth’s surface, it would be enough to sheath the entire planet with a gold covering that would be one and a half feet deep. Wood compared the composition of the Earth’s crust with that of meteorites with similar compositions. Findings from the study indicate that elements like gold, platinum and nickel were pulled toward the Earth’s iron-rich core millions of years ago when the planetary surface of the Earth had not yet formed and was a liquid mass of molten lava.
Professor Wood has pegged the amount of gold in the Earth’s core to be about 1.6 quadrillion tons! Scientists believe that it was only much later that meteorites from space deposited gold on the Earth’s surface after the complete formation of the planet and that is the gold that we mine today.
2. For every cubic mile of water, there could be 25 tons of gold in the sea
In a recent article published by National Geographic, researchers claim that there could be enough gold under the ocean beds to supply every person on Earth with nine pounds of gold each. This could possibly be an estimated $150 trillion of gold! Currently, a new project called Solwara 1 is being set up in Papua and New Guinea to undertake deep-sea mining operations.
Abu Dhabi boasts of a gold vending machine that delivers gold bars
3. The world’s most expensive gold coin
The 1933 Double Eagle is an American twenty-dollar gold coin that has plenty of controversies that surrounds it. Nearly half a million of these coins were made in 1933, but none were circulated and all the coins were melted down except two. It was later discovered that twenty such coins were stolen and were therefore not melted down. Nine of these were recovered by the United States government and melted. Currently, there are only 13 in existence, out of which ten are with the US government in Fort Knox. Two are with the US National Numismatics Collection. There is only one in existence that is privately held and the collector bought it at an auction in Sotheby’s, New York for the princely sum of $7.59 million, making it the world’s most expensive gold coin.
4. Elvis, the king of rock n roll had a gold plated car
It is believed that rock n roll legend, Elvis Presley owned three cars specially made for him by the Stutz Motor Company. Elvis bought a Stutz Blackhawk on October 9, 1970, becoming the first person to own a Blackhawk. Elvis subsequently purchased Blackhawks manufactured for him by the Stutz Motor Company in 1971, 1972 and 1973. The 1973 model had all the chrome plating replaced with 18-carat gold plating.
5. The chemical symbol for gold
Most of us who have studied high school chemistry are well aware that the chemical symbol for gold is Au. However, not everyone knows that the symbol originates from the Latin word, ‘aurum’, which stands for ‘shining dawn’ in the ancient language. Gold, with atomic number 79, is a noble metal. It has some unusual properties. For example, it does not rust or get discoloured. The precious metal also does not react with air and does not form oxides when it comes into contact with air.
6. Gold can be moulded with bare hands
Pure gold can be bent with bare hands. It is considered to be the most malleable of all metals. Gold can be beaten into thin sheets that are 400 times thinner than a human hair. These sheets are called gold leaf and can are popular with artists who use them for gilding. An ounce of gold is so malleable that it can be beaten into a large sheet that covers an area of 100 square feet.
7. The world’s largest nugget of gold
Two Australians are credited with the discovery of the world’s largest nugget of gold. Christened the ‘Welcome Stranger’, this nugget was huge, measuring 10 by 25 inches until it was melted. Currently, the largest nugget in existence is called the ‘Hand of Faith’, and it was also unearthed in Australia in 1980, and can be seen on display in the Golden Nugget casino in Las Vegas.
8. The heaviest gold coin
Austria’s Philharmonic is the heaviest gold and weighs 1000 ounces, which is 31.1 kg. This is equivalent to 69 troy pounds. It has a diameter of 15 inches and is listed in the Guinness Book.
9. Gold can be drawn into really thin wires.
As a metal, gold is so ductile that it can be drawn out into a wire that is five-millionths of a meter in width. The wire can be stretched to a distance of 50 miles (80 km).
Gold with 99.9% purity is usually quite soft and malleable
10. South Africa used to once produce 75% of the world’s gold – now produces only 6%
South Africa’s rich gold mining industry that once produced two-thirds of all the gold in the world has now imploded and produces just 6%. One-third of the industry’s 180,000 miners were fired since 2004 and falling international demand and depleted reserves in the major mines have hit the country’s once burgeoning economy with a double whammy.
11. The world’s largest consumption of gold happens in China
China is today the world’s largest consumer of gold, importing close to 975 tonnes annually. In comparison, India imports around 700 to 800 tonnes each year and is the world’s second-largest consumer. It is interesting to note that South Asian jewellery is purer and is made of 22-carat gold.
12. Gold is a disease-modifying drug
Strange as it may seem, gold is considered to be a disease-modifying antirheumatic drug (DMARD). The injections consist of sodium aurothiomalate, which contains gold and is injected into the muscle to reduce the progress of auto-immune diseases like rheumatoid arthritis (RA). They also reduce inflammation. The injection usually starts taking effect three months after it is administered.
13. The world’s first gold coins were minted 5000 years ago
Lydia, now in modern-day Western Turkey is credited with having produced the world’s first gold coins under the reign of King Croesus (561-547 BC). The coins were not made of pure gold, but an alloy of gold and silver was used.
For insight and advice, watch our video “How to buy gold“.
14. There is a vending machine that gives out gold bars!
The world’s first gold vending machine was inaugurated in 2010 and is situated in the lobby of the Emirates Palace Hotel in Abu Dhabi. It delivers gold bars to customers who wish to purchase them. The machine is run by a German company called TG Gold Super Market.
15. A 100-kilo Canadian gold coin was stolen from a German museum!
A 100-kilo gold coin called the ‘Big Maple Leaf’, the only one of its kind was minted by the Royal Canadian Mint in 2007. It was stolen from a numismatic exhibition at Bode museum in Berlin in 2017 by thieves who took it away in a wheelbarrow!
In a digitally connected world today, it’s possible to purchase anything online, including real estate, cars, bikes and even gold coins and bars. However, before pulling out your credit card and making an expensive purchase online, you need to be aware of what you’re getting into and ensure that the product you’re buying is legitimate and genuine.
It’s common knowledge that social media-powered marketplaces are great when it comes to buying books, CDs, clothes, shoes and even your groceries. But would you trust an unknown seller behind a wall of anonymity, when buying gold coins or bars worth thousands of pounds? Different sites have varying levels of security and consumer protection.
Ensuring that the product you’re buying is genuine and the seller you’re buying from is legitimate are all important steps in the buying process, when it comes to buying gold online. Remember there are plenty of online scammers waiting to relieve you of your hard earned cash, so ‘buyer beware’ is the all-important mantra.
Social media is becoming increasingly popular with gold sellers
eBay
Perhaps the most popular and frequently visited online marketplace in the world is eBay. Gold coins, bars and jewellery are all available on eBay. The California based ecommerce behemoth takes consumer protection seriously and even has a series of articles on how to buy gold and silver safely on eBay without getting conned. eBay’s money back guarantee protects buyers against fraud when purchases are made using PayPal. Purchases that fall within certain categories are not covered, such as real estate or intangible goods. While there is no mention of gold and silver in this category, it’s best to contact the company if in doubt before making a purchase. It’s important to note that the money back guarantee is valid for purchases only up to a certain amount. Once you’ve taken the necessary steps to protect yourself, it’s easy to find physical gold on eBay. Just search the ‘coins and paper money’ section and it’s all listed there.
Many online e-commerce sites are popular with numismatists
Other popular social media sites
Many online bullion retailers have listed their pages on popular social media sites like Facebook. Facebook prohibits the sale of bullion on their platform. So, visitors simply use the company pages of these sellers to be redirected to their sites. Facebook also has private groups of sellers and buyers of gold, where buyers can contact sellers. Needless to say, utmost precaution should be exercised when entering into a trade through this route.
Instagram is another popular social media site where buyers can connect with sellers of gold coins and jewellery. Instagram is very visual and it’s important to have high-quality images to attract customers. Images now have a shopping basket tag on Instagram, so buyers can click on it and go to the seller’s e-commerce site. Etsy is another popular social media site where interested parties can buy gold coins and bars. As online selling booms in the coming years, many traditional brick and mortar bullion sellers will turn to the internet to sell.
Do your homework!
However, as discussed earlier, when buying high-value items like gold and silver without physical verification, it’s important to do your research well, vet the seller, check their social media ratings, etc. The greatest advantage of social media sites is that one can check ratings provided by other customers. Pay attention to negative comments posted and understand what the issue is about. Sometimes it may be about packaging or delayed delivery. Or is it about fake products? Is the customer accusing the seller of being a cheat? If so, stay clear of that seller. Many have trust badges and physical verification of the seller conducted by the site itself. All of these are helpful in completing your due diligence. Once you’re done with that, happy hunting for online bargains for physical gold.
Contact the experts at Physical Gold
There are some great deals out there, however, if you’re unsure of what you’re buying, contact us on 020 7060 9992 and our experts will be happy to give you the right advice.
A nest egg is a substantial sum of money that has been saved or invested, usually for a specific purpose. A nest egg is generally earmarked for longer-term financial objectives, the most common being retirement or buying a home.
The actual term itself has been used to refer to savings since the late 17th century and originated from an old poultry farmers’ trick of placing eggs in hens’ nests, to induce them to lay more eggs. As the chickens laid more eggs, this naturally brought the farmers more revenue.
However, you don’t need to be in your 70s to retire. Increasingly, people are retiring early to pursue their passions, travel the world and explore new horizons. However, in order to do all of this, as well as have a safety net in the twilight of your life, your savings will simply not be enough. Rising inflation, greater life expectancy, low-interest rates and a meteoric climb in the costs of living are threatening to erode whatever you have saved up. In order to build a corpus for a comfortable retirement and be able to tick off every item on your bucket list, you require a well-planned, diversified investment strategy that generates good returns and beats inflation.
Building a gold nest egg is a great idea
Savings with zero taxes
For many of you reading this, by now you may have already begun saving into your nest egg and preparing for your retirement, with either a pension or ISA, or a combination of both. If you haven’t done so already, you should consider starting right away. Physical Gold is an alternative, tax-free opportunity of saving for your nest egg, as easily as you would save into an ISA or Pension. But, the added advantage of certain gold and silver coins is that there’s no cap on the amount you can save per year, no lifetime allowance and zero taxes incurred on any gains you make.So worrying about squeezing your annual allowance into the tax year end is a thing of the past.
Protection and insurance of your assets
Physical gold not only helps protect your other assets but in times of uncertainty, can help to insure them by providing balance. History has shown us that in times of economic and political instability, gold has invariably moved up in value. Physical gold is the perfect solution for you if you want to insure your hard-earned wealth, save for your retirement and protect your nest egg from inflation and taxes.
As gold investment experts, we are ideally placed to advise you on how to build your portfolio in order to maximise returns when investing in precious metals, as well as mitigate your risks and protect your capital. Our investment experts can advise you on how to distribute your investments across asset classes – by literally ‘not placing all your eggs in one basket’. We can, therefore, review your investment goals and objectives, not just for you, but your entire family.
The best bit…
More importantly, we take into account when you want to retire, whether you want to leave a legacy and how you wish to plan your estate. Once these milestones and their subsequent timelines are established, we can then advise you on moving a portion of your investments away from riskier stocks and bonds and placing them into safer and stable investments in gold and silver. Our investment experts can guide you on how to plan these investments over time so that you build up a substantial ‘nest egg’ that you can depend on when you hang up your boots.
A golden nest egg
Gold and silver markets have shown great promise in recent times and fared well in response to the volatility of international equity and debt markets, the falling US dollar, uncertainty in Europe due to Brexit, geo-political turmoil in the Middle East and the threat of global terrorism.
These macro events have seen investors shy away from debt and equity markets and seek safer investment options. In particular, the falling US dollar has seen global investors pulling out of their investments in USD and this has renewed interest in gold and silver. The recent uncertainty surrounding the legitimacy and acceptance of cryptocurrencies is yet another factor that has prompted investors to hedge their risks by investing in precious metals. There has been no better time to consider investing in gold and silver and our investment experts can help you do just that.
Build a nest egg with Physical Gold
With options available for almost any investor and any budget, if you want to build a solid nest egg for you & your family’s future, contact www.physicalgold.com today by calling 020 7060 9992.
Whether you’re diversifying your existing portfolio, consider taking advantage of the security of gold or simply using gold and silver to save a little for your future, we would like to help you a little with your research. Included below is a link to our ‘5 steps to gold investment’ infographic. You might already know that you’re ready to own some gold or silver, but perhaps you’re unsure as to how to get started? Where do you go, what type of gold or silver do you purchase and what happens next?
Our simple five steps will provide all the information you need to begin investing. Simply click here or the image below, to view the infographic.
Are you interested in gold investment but uncertain as to how to get started? Our easy-to-follow infographic will give you all the information you need, showing how you can, in just 5 easy steps, diversify your portfolio, increase your investment returns or just put a little aside into the ultimate safe haven.
Talk to an experienced gold dealer
Your best bet for securing your gold investment is to do your research and find an experienced gold dealer who are BNTA accredited, have good reviews and years of experience. Have an initial chat with them about who they are and what they do. Any credible precious metal dealer should be willing to talk through their services, explaining how they operate and your options for investing in gold. They should be able to get you the best possible price for your precious metal purchase and offer other options, such as storage or savings. They should be able to talk you through the benefits of owning gold and how it works as part of your investment portfolio.
What should I know?
Historically, the price of gold has risen steadily and predictions for gold prices in 2018 look good. Not only is gold an important asset class that you can use to diversify your investment portfolio, but it is also often considered to be a safe investment option that helps you reduce your overall exposure to market risk, especially if much of your money is invested in global stocks and bonds. In the last year alone, spot prices of gold have risen from USD 1220 to 1330. Apart from investments in gold bars, several investors enjoy investing in gold coins, which enjoy increases in price, depending on demand from numismatists around the world. Gold coins are often purchased by investors, not just for their value, but for their aesthetic appeal. All of these factors play an important role in your decision to purchase gold and you should consider discussing these with your gold investment broker, prior to purchase.
Your dealer will be able to advise you on the different options of gold investment available, but it’s worthwhile having some idea of your objectives before you enter into the conversation. There are generally three common choices for the type of gold you wish to buy; tax-free (UK) coins, gold bullion or foreign coins. Depending on your situation, and reasons for wanting to purchase gold, the type of coin or bullion that will be most suited to you will be different. But don’t worry. An expert broker will be able to analyse all of your requirements and give you some options on which type of gold to purchase.
Decide how you want to buy your gold
Depending on which dealer you choose, there are different options available for gold investments, but it’s worth knowing a little about the different options available, before starting the conversation.
Three common options you’ll probably come across include;
Regular, monthly gold savings,
Pension gold
A simple one-off gold investment purchase.
Pension gold allows you to add gold as
an element of a Self Invested Personal Pension (SIPP), diversifying and protecting your savings for your retirement.
The difference between the other two types is simply whether you just want to purchase one investment in gold or whether you want to save regularly (£250 per month, for example) to boost your gold holdings over time. The latter can often be a good option for those just starting out.
Some gold dealers will offer secure storage options, which is a very effective way of making sure your gold stays safe. But, if you do want to take delivery of your gold then you’ll need to think about some safe ‘at-home’ storage. There are a number of clever, hidden gold storage options, like a clock or wall socket, that you can use at home. We do recommend somewhere a little more secure than under the mattress and that your home insurance covers the value of your gold investment.
Complete your purchase and relax!
Once you’ve decided on all of the above, with a little guidance from your dealer if you need it, all you need to do is buy your gold online and your purchase will be complete. Safe, insured delivery is usually within 24hrs if your gold is in stock.
Gold is one of the most resilient asset classes out there and historically, has often beaten the market benchmark for investment returns.
The most important step!
Perhaps the most important step! is to give us a call here at Physical Gold. We are here to help and can be relied on for impartial advice in all aspects of gold investment. Call us today on 020 7060 9992 or view our contact details here.
Of all the 118 elements in the periodic table, there is one that has continually stood out from the rest. Gold, the most precious and beautiful of all metals, has been highly valued throughout mankind’s history and continues to capture the hearts and minds of people all over the world. For thousands of years people have been captivated by this precious yellow metal but why is it so popular and why do people desire it so greatly?
In many ways, gold is the perfect element. It is naturally beautiful, and it doesn’t react with anything, making it perfectly safe to use. It is also solid in form unlike a lot of other elements that are gases or liquids.
Gold coin engraved with periodic table number
Gold is the colour
Gold’s stunning yellow colour makes it unique amongst other elements on the periodic table as it is the only metal to naturally display a colour other than silvery grey or white. Gold’s colour is so unique in fact, that it even has a colour named after it.
It’s a great natural conductor
Gold is a great conductor of heat, light and electricity which is why it is used in everything from computer chips to mobile phones. Gold’s many conductive properties mean it is also very hard to find a substitute metal.
It’s not harmful
Unlike some elements that might combust into flames or react unstably when combined with other elements, gold is almost completely non-reactive. It also doesn’t have any of the other negative traits that affect many elements – it is non-poisonous (You can even eat it without any negative effects) and it is non-radioactive.
Physical properties
Gold is very malleable metal. Not only is it fairly durable, it is soft enough to easily shape into different things. You can also melt gold down relatively easily, unlike other precious metals such as platinum, which makes it easier to extract.
One of the most beneficial properties of gold is that it doesn’t react with oxygen and so doesn’t tarnish in the same way that silver does. This makes gold the perfect metal for use in jewellery, and any other items you want to stay looking shiny and brand new.
Rarity
Gold is a comparatively rare metal which is why it is
expensive to buy and so highly sought after. When people first started trading in gold, it was considered a scarcity and therefore had great physical value, which is one of the reasons why it has become such a highly regarded precious metal.
Whilst gold is rare, it is not the rarest of precious metals included in the periodic table. Metals such as platinum and palladium are actually far rarer. In the past, these metals would have been considered too rare to use as a currency which is why gold became the precious metal of choice.
Gold has long been associated with wealth and status. Ancient civilizations held the metal in particularly high regard and often used it in the creation of sacred objects such as ritual cups, daggers, and jewellery. The ancient Egyptians frequently used gold as a way to honour their gods and there are many examples of golden artefacts dated from around this time. Individuals of great power such as the pharaohs were also often buried along with their gold.
Gold as a display of status
Over the years gold has frequently been used to represent power or status and some of the most iconic status symbols of recent times have been made out of gold. Whether it’s a gold iPhone, gold chain or gold Rolex, it appears that nothing says you’ve made it more than showing off a bit of gold.
Perhaps the most iconic display of wealth and status in recent times is the gold card. Due to these credit cards requiring strict application criteria in order for someone to successfully apply, it’s really no surprise that they have become the card of choice for the rich and wealthy. Gold cards come with a whole host of added benefits in order to make the user feel more distinguished such as a higher credit limit, cashback vouchers and air miles.
Celebrities and superstars
Gold jewellery has long been a favourite with celebrities and superstars and they are often seen photographed wearing some form of “bling”. Whether it’s Kanye West showing off a new gold ring or Jay Z wearing a giant gold chain, celebrities continually turn to gold in order to show off their wealth and status.
Gold Rolex watches are a popular symbol of wealth amongst celebrities
Gold symbolism
The colour gold is often associated with success or achievement. A gold Rolex, for example, is often presented as a gift to someone who has just graduated from university.
Gold is also associated with strength and throughout history, gold has been linked to both masculine energy and the power of the sun.
Foreign attitudes to gold
Certain countries, in particular, India and China, have very different attitudes to gold than ourselves. In India, where people traditionally tend to carry their wealth about their person, gold is seen as the ultimate form of portable wealth, and many of the women in particular often wear some form of gold jewellery. In China, gold is also valued very highly, and the country is one of the biggest exporters and importers of gold in the world.
For the majority of people in these countries, gold is not only seen as a display of status but also as a way for individuals to store their wealth. In China, for example, a lot of people collect gold in order to leave it to their families and loved ones after they are gone. This is because gold is viewed as a tangible asset that holds its value very well.
Store your wealth in Physical Gold
Here at Physical Gold, we offer a wide range of gold investments to suit every type of owner. For more information on our services, why not give us a call on 020 7060 9992?
A topic we all want to know the answer to – “How to sell gold for the most cash”, in our YouTube video.
Bitcoin’s parabolic price rise was the big story of 2017 – putting the spotlight on the cryptocurrency market. While gold’s performance was a solid 13%, it was a fraction of the 13-fold increase of bitcoin by the end of the year. Some commentators went as far as to claim cryptocurrencies could replace gold. Cryptocurrencies may become an established part of the financial system. But, in our view, gold is very different from cryptocurrencies, as gold:
is less volatile
has a more liquid market
trades in an established regulatory framework
has a well understood role in an investment portfolio
has little overlap with cryptocurrencies on many sources of demand and supply.
These characteristics underpin gold’s role as a mainstream financial asset that will likely continue to resonate in today’s digital world.
Investors now have more choice than ever when it comes to investing in gold. From pension plans to savers plans, there is something to suit every requirement. Regular gold investment plans are a great way to accumulate gold over a sustained period of time while spreading both the cost and risk that comes with investing in precious commodities. Here are several reasons why you should consider investing in a regular investment plan as opposed to just purchasing gold in one lump sum.
Invest as much or as little as you want
Regular gold investment plans allow you to invest in much smaller quantities than you would otherwise be able to. If you’re new to investing or you don’t have a huge amount of funds, then a regular investment plan can help you spread the cost of buying gold over a longer period, so you don’t need to have the total cash upfront. Generally, dealers will advertise a minimum set price you are required to invest each month, however, this could be as little as £100.
Invest when it’s convenient for you
One of the many reasons people chose to invest in regular investment plans, is that it allows them the freedom to increase or lower their investment as their circumstances change. For example, you may want to gradually increase your monthly investment over time as you’re pay increases, or perhaps you’ve finished supporting your children through college or finished repaying loans/mortgage and now have additional funds to invest? A regular gold investment plan allows you to be versatile in your investment and you can stop paying into it at any time should you wish.
Avoid market volatility
One of the most difficult aspects of investing in gold is trying to judge the best time to invest so as to maximise your profits. Investing in a regular gold investment plan takes away the difficulty of having to try and predict the market. You avoid buying all your assets when the market is at its peak and by buying gold over a sustained period you end up paying a more balanced price. This is known as unit cost average saving.
Gold sovereigns are a great option for investors
Lower premiums
Dealers will often offer customers incentives to enter regular gold investment plans with them. This may include lower premiums than if you were buying gold as a one-off purchase.
Set up an automatic payment
A lot of dealers allow you to set up a monthly automatic payment or standing order with them. This way you can build up your gold portfolio without the worry of having to remember to order each month.
Invest in our monthly saver scheme
Our monthly saver scheme is a great way to purchase gold on a month-by-month basis. We can source the best quality coins at the best possible prices, and our scheme is individually tailored to your needs, depending on the amount you wish to invest. We even post the coins direct to your door. For more information, please contact us on 020 7060 9992.
In 2017, investors added gold to their portfolios as incomes increased, uncertainty loomed, and gold’s positive price momentum continued: US$8.2bn flowed into gold-backed ETFs and the US$ gold price rose 13.5%, its best year since 2010As 2018 begins we explore four key market trends and their implications for gold:
synchronised global economic growth
shrinking central bank balance sheets and rising rates
frothy asset prices
market transparency, efficiency, and access.
We believe that these trends will support demand and maintain gold’s relevance as a strategic asset.
Gold has delivered positive returns over the long run, outperforming key asset classes
Annual average returns over various time periods*
*As of 31 December 2017. Annual return computations are based on total return indices, except gold where the spot price is used. This arrangement more accurately reflects portfolio level performance.
Source: Bloomberg, ICE Benchmark Administration, World Gold Council
A diverse selection of investments is essential if you want to create a well-balanced portfolio. Most financial advisers recommend that you allow for a small percentage of alternative investments which include hard assets such as precious metals and collectables.
Gold is considered an ideal method of diversification by some investors, as it often climbs in value during times of economic crisis and its performance has very little statistical correlation to the stock market. In other words, this means that in the event of a market crash, gold is unlikely to be affected in the same way that traditional stocks and shares would.
Gold also has a long and proven market history, with people turning to the precious metal as a store of wealth for centuries. The estimated annual returns for holding gold bullion over the last 15 years is a little over 12 percent.
Gold is a tangible asset that offers real value and reduces risk. Unlike stocks and shares,
gold is something physical that you can hold in the palm of your hand. It also offers a great alternative to fiat currency which has no real material value and is not backed by any physical commodity.
Here’s the deal…
Gold offers a material value based on the weight of its gold content whereas the value of fiat money is based heavily on supply and demand. It is also only valuable as long as people trust the central government and bank that issues the notes, whereas gold prices aren’t quite as reliant on these factors. Here are several other key reasons why gold is an investment worth considering:
High liquidity
Gold is considered a liquid asset which means that it is relatively easy to sell or convert into cash. There are thousands of sellers and dealers both online and off and physical bullion is one of the most widely traded commodities all over the world.
Production is declining
Gold is a finite resource which means we could eventually run out of it one day. Gold production has already started declining in some countries, in particular, South Africa, which used to be the biggest producer of gold in the world. As resources become scarcer and the cost of mining them increases, gold mining companies will be forced to increase their costs which could mean that gold prices rise as a result. It can take from five to 10 years to bring a new mine into production so should global demand for gold continue to rise then mining companies may struggle to meet it.
Abandoned Gold Mine
Global demand
New uses for gold are being discovered all the time. Advances in technology have led to a great deal of gold being used in computer chips and electronic devices, for example. This is because although gold is more expensive than other more conductive materials such as silver and copper, it doesn’t oxidise in the same way that other metals would.
That’s not all…
There is also currently no real substitute for gold. The fact that it does not tarnish and is an excellent conductor of heat, light and electricity makes gold the ideal material for a wide range of industrial uses.
Gold as a hedge against inflation
Gold is often purchased as a hedge against inflation. This is because traditionally gold prices have always been shown to hold their value over long periods of time, thus offering valuable protection against a potential dip in currency. Statistics have also shown that during periods of high rates of inflation, gold prices have risen significantly, making it an attractive prospect for investors.
Something to pass on to family and loved ones
Gold is often left to people as an inheritance due to the fact it is an excellent store of wealth. Gold has been proven to hold its value over a long period of time which means people trust it to continue to do so in the future. It is also incredibly durable and the fact that it doesn’t tarnish means it can be passed on to future generations as a family heirloom.
Live Gold Spot Price in Sterling.
Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.
Silver Information
Live Silver Spot Price in Sterling.
Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.
As 2018 begins we explore four key market trends and their implications for gold:
