The Value of Gold
Over the centuries gold has acquired symbolic value which very often has
equate not only with the richness but also with eternity, divinity and
knowledge. Aside from the gold symbolism it has served as the payment medium
and because of their characteristic it was applied also to industry. In this
article, I would like say a quick word how much gold is there in the world and
why it is so precious.
A single ounce of gold is roughly the size of a sugar cube and currently
sells for nearly $1200. Gold has been part of the world's many monetary systems
for thousands od years and banks still hold gold reserves as a store of value,
as an asset and as financial insurance should they hit economic turmoil. Before
I talk how much gold exists Firstly I'll talk about what gold is and why it is
so valuable. At the world exists much more another metals but what gold has,
it's superior chemical properties. Gold cannot be destroyed by water, as it
doesn't rust. Gold is also uniquely malleable because it spreads without
cracking, it is ductile, as it stretches without breaking and most important
gold is very rare. It's estimated that all gold ever found is about 177 000
tonnes. So, if we would gathered all available gold together we would receive a
cube with side length of 21 meters. It would look like to more or less as below
Gold protect us also from the inflation and let us to hold spending
power over the long term. For the example, over hundred years ago a new model
of Ford T could have been bought for about 20 ounces of gold. Today it 20
ounces is worth a little over $25000, so for the same count of gold we could
also buy a new Ford.
On over the world gold is considered as the most secure investment and
treasure a protection against of economic bust, inflation, exchange rate fluctuation
especially in the restless times as nowadays. What is more, frequent turbulence
in the financial and geopolitical markets and most of all terrible events in
the world like spreading of the terrorism does not affect on reduction of gold
value but keep it value on very high level. Together with gold you acquire
international currency which you can monetise anytime as you want.
Well, these few facts shows us, gold isn’t only beautiful treasure and
shining metal but also underestimated insurance policy of your private assets
- What do you think about gold and the future of this raw material?
- Do you think gold can defend us against the economic and geopolitical turbulence? Does it a good way to defend against inflation?
- Maybe, you disagree with above article and gold does not at all so valuable I had written?
- Do you know any physical material which has similar or even more powerful properties than gold?
Sources
https://www.youtube.com/watch?v=lQ5sNSTNLL0
https://www.youtube.com/watch?v=4RuklTqr02U
https://www.hardassetsalliance.com/blog/why-is-gold-valuable-the-5-reasons-most-investors-overlook
Interesting view on gold. Thinking it over it seems reasonable to protect money or rather savings via gold. For sure it’s much more valuable than paper from which banknotes are made or a piece of plastic with a chip. However price of gold also fluctuates so it is rather long term way of protection, unless hyperinflation will come soon. Gold was valuable throughout ages, so why not today or in the future, but also in the past poor people didn’t buy gold. It was domain of richer part of society. Probably now there is also a group of people who purchase it, but don’t want to boast, except billionaires like George Soros.
ReplyDeleteYes, if You want to buy a big piece of gold You definitely must be a billionaire. But thanks to gold mint gold is also available for normal people because you can buy e.g 1 ounce or even 1 gram.
DeleteI agree with what you said. Right now gold is a great way of insurenace and diversification of savings.
ReplyDeleteI wonder what will happen when we start to mine outside of earth - eg. on asteroiods. There can have very large amounts of gold and other rare elements in them.
Maybe even more than there is on earth right now. What will happen then? Will our ecenomy crash becouse gold will no longer be that precious?
It is a good point of view. I thnik it takes many years before we can really start to mine gold outside the earth. Nowadays, much more propable is we suddenly discover large reserves of gold and if that happens, I think it can shake the economy.
DeleteWhat do you think about gold and the future of this raw material?
ReplyDeleteI think gold is a great indicator of value and is resistant to inflation. The future could be interesting as it is a limited resource and by that the value of it will be increasing.
Do you think gold can defend us against the economic and geopolitical turbulence? Does it a good way to defend against inflation?
Nothing can defend us completely but up to some point to have coverage in gold is a generally a good idea. Yes, as mentioned before it stands well again inflation.
Maybe, you disagree with above article and gold does not at all so valuable I had written?
I agree with the article. It's a good amount of knowledge presented in a short way.
Do you know any physical material which has similar or even more powerful properties than gold?
I would guess diamonds as they are even more expensive, more resistant and rare.
1. What do you think about gold and the future of this raw material?
ReplyDeleteI think that gold has a future in electronics and jewelery only. With time people shall develop another system of values and economy.
2. Do you think gold can defend us against the economic and geopolitical turbulence? Does it a good way to defend against inflation?
For now yes, untill no substitute is developed.
3. Maybe, you disagree with above article and gold does not at all so valuable I had written?
Gold is valuable in these days and it will be yet for some time.
4. Do you know any physical material which has similar or even more powerful properties than gold?
Yes, it is platinium.
I agree with you that gold is the noblest and valuable raw material.
ReplyDeleteOf course, also the perfect financial security. It seems to me that there is no more valuable raw material that could replace gold, in particular because of its low occurrence on earth
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ReplyDeleteSuch different point of view on gold is quite interesting. I feel like the value of gold will only be increasing in the future. As you've mentioned in you article it's a very rare earth resource, I wonder if it can be copied by engineers? There were examples in the past were the gold had been defending our global market. I am sure it will not be used once as nowadays it's a good protection against inflation. Gold is valuable resource, that's for sure, but there are many more examples of them. Let's take diamonds, source of many ruthless wars in Africa for example, sometimes even called blood diamonds. There's also an oil, which has shaked the world's economic situation many times already. Not sure if diamonds are more powerful than gold, but for me personally I would always choose it over gold.
ReplyDelete1. What do you think about gold and the future of this raw material?
ReplyDeleteIt will get higher on value therfore it's a good opportunity for investments.
2. Do you think gold can defend us against the economic and geopolitical turbulence? Does it a good way to defend against inflation?
I'm not the specialist but basing on the knowledge I just get it looks as a very stable investment and keeps it's value.
3. Maybe, you disagree with above article and gold does not at all so valuable I had written?
I agree with the article but as I wrote I don't have any knowledge about investments in raw materials, so I can't discuss it.
4. Do you know any physical material which has similar or even more powerful properties than gold?
I think mineral oil is also valuable and I heard it's also a good opportunity for investments.
I think gold may be considered a good alternative for keeping money on bank account (not to mention of having cash hidden somewhere in your house). In the past when financial crisis occurred, some governments were tempted to impose additional taxes on citizens having money in banks (like in Cyprus in 2013).
ReplyDeleteI think that gold will keep its trend, because it’s unique and desired. What will be in future, we will see, its value is based on interest, like everything’s - see history of bitcoin, but gold is real at least. Time will tell. I don’t think that gold defends us against the economic and geopolitical turbulence. Regarding geopolitical situation I feel like it played opposite role in a past. All these wars.. There are so many great materials in the world, but gold does not attract me so much, I am curious about the future of Graphene.
ReplyDeleteI heard few times in my life that I should invest my money for gold, but never did maybe I will do that after reading your article ;) As it was used before and it's used now I think that it will still have a big value in the future. I think it is good idea to have some physical materials as some percentage of funds gathered. I heard that diamonds are really valuable and a good thing to make investment in.
ReplyDeleteGold is generally considered as a good store of value. It is a proven and long-term wealth store during times of crisis. However what it’s future will be is hard to say. By the way, gold is one of the ways to protect us from inflation but it is not as safe as people think. Government can even take your gold away from you in times of crisis.
ReplyDeleteGold is gold, solid material. However it's not free of speculations but definetly more stable than silver when it comes to value. Gold's value is based on it's quantity so it won't change that much as we can't mine much more of it. All precious metal (gold, silver, copper, platinimum) have similar properties, however they differ.
ReplyDeleteI guess it's common for us- humans- that each generation thinks about itself as a special one. As you mentioned in your article gold was used for so many ages and I think that we'll still used it for quite a bit. The fact of how important the gold is we could based on how SOME countries trying( or moreover tried and it happened) to separate paper money from gold itself for purpose of devaluate currencies.
ReplyDeleteUnfortunately I can't answer most of your question but by myself I'm trying to invest in gold from time to time so I hope that it can defend us from at least some economics turbulence.
This is interesting! I am inclined right now, to buy all of the gold in the world and actually make the cube! I hope one day, as in Star Trek, we can move past money and maybe put it up as a monument of what once was! This would be absolutely hilarious, although not meaningless.
ReplyDeleteFor the time being I would agree that gold is going to increase in value. Gold always increases in value when there is turmoil in the World and we have no shortage of that. I actually thought about a new article concept that I would love for someone to explore: how many wars are currently going on in the World? Ever since the big war, we are so afraid, that we keep talking about conflicts, or power struggles, without calling them actual wars, where there are probably around a hundred of those all around the World.
Anyways, back to the Gold. I think there are going to be synthetic materials that are going to have incredible properties. Graphen might be one example. Is it going to be so expensive? Depends on the production process. Basically whatever increases in demand and reduces in supply will have its price growing. We can imagine that clean air, fertile land, or pure water is going to be what ultimately surpasses gold in value. Sad, but probably true.
I am afraid gold does not protect me from anything. No gold here I'm afraid ;)