What is Gold

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Since prehistoric times gold has been widely recognized as one of the most influential and highly valued metallic elements used by man. From jewelries to coins and other gold-based ornaments it has been used by civilizations as a symbol of wealth and prestige.

In its basic form, gold appears in rocks as nuggets or grains. It is soft and glossy with its trademark yellow color and is also ductile and malleable. And its uses are not only limited to decorative purposes.  Gold is also used in different industries such as food and beverage, medicine, electronics, telecommunications and of course; gold is money.

On a scientific level, gold is listed on the periodic table of elements as Au with the atomic number 79. It is also categorized as a transition metal which can create trivalent and univalent cations upon reaching solvation. Gold is soluble in mercury and thus creating amalgam alloys. However, it is insoluble when immersed in mercury, leaving other metal alloys such as silver to separate itself. This method is clearly demonstrated in inquartation and parting.

Since it is one of the most malleable and ductile of all metals, a sheet of a square meter can be made from a single gram of gold. In fact, a gold leaf, with the right methods can be changed to a translucent sheet. This is why gold is the preferred metal when it comes to creating jewelries, as it is malleable and also not affected by natural corrosive elements that can tarnish other metals. Gold can also be used to create a lot of other metal by fusing it with other alloys.

Another characteristic of gold is its ability to conduct heat and electricity. It also has the ability to repel infrared radiation. But aside from its industrial uses, gold is also used as money and monetary currency.  There are even digital gold currencies like GoldMoney that allow gold to circulate in ordinary daily transactions.

In most countries, gold was used as the standard for monetary exchange. But due to the rise and adoption of fiat currencies, gold has been mostly used as a monetary reserve and investment tool. During the First World War, the nations engaged in the conflict went on to use fractional gold standard. And this cause led to the inflation of the nation’s currencies that were used and inflated to finance their war. In the 20th century, Switzerland was the last country to use gold as its monetary standard.  In 1999 it joined the IMF or International Monetary Fund.

Gold is usually measured by its purity in carats. Investors and collectors usually buy 24k or 22k gold, and one example is the Canadian Gold Maple Leaf coin. There other examples such American Gold Eagle, British Gold Sovereign and the South African Kruggerand and they are usually listed as 22 karats.

The mining of Gold and developments in modern technology has led to more consumption and usage of this metal. And as the supply of gold is projected to decrease in the future, the value of gold, as a commodity will definitely rise giving all collectors and investors something to look forward to.

RELATED POSTS:

1. Investing in Gold Coins
2. Advantages of Gold Investment
3. Gold Investment – Savings Options
4. Disadvantages of Saving in Gold
5. Selling Gold

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