It is a known fact that Gold is used as a cash on hand commodity. They say it is an evergreen metal and investment. So what is it about this bright yellow piece of metal that makes it so dear, not only to people on earth but also to people being launched into space. Is it only its value? Its evergreen and ever increasing price or is it something else. A variety of factors play a role in making this metal so dear.
Marketing and Myths around Gold: The ancient Egyptians called it the flesh of Gods and buried the dead with it. It is also supposed to have an effect on ones heartbeat and blood pressure. Some astrologers believe in the benefits of gold depending upon the position of sun in ones horoscope. Parents gift their daughters gold in the form of jewellery on her wedding. The value of diamonds also increase when set in gold.
Not much gold available in the mines: It is said that Gold was brought on the earth some 3.6 billion years ago by the collision of 2 meteors and it sunk deep into the surface of the earth, it is therefore impossible for us on earth to mine this gold by an easy mean.The cost of mining far exceeds its availability. That is why it is so difficult to get gold and increases its costs globally.
Uses of Gold: All the gold in the world can be put to great use. It not only is the highest malleable and ductile element on earth but it has very important core uses such as its uses in medicines, architecture and every other electronic as also in the visors of astronauts. Most central banks hold upto about 17 percent of it and private equity investors about 13 percent which comprises bitcoins, bars or coins.
Gold, Crude and Inflation: It is a known fact that as inflation increases the pricing of Gold also increases. Crude and gold pricing have a similar effect if we look at a 100 year old chart.This precious metal is a good hedge against increasing prices of food and crude which account for the core inflation group.Central banks prefer to buy gold from the IMF in order to offset increasing global crude prices.
It is therefore the most sought after form of investment for centuries and will continue to dominate the minds of the investors. It is rightly called Dear Gold. The current gold standard will remain the most sought after literally and metaphorically.
Marketing and Myths around Gold: The ancient Egyptians called it the flesh of Gods and buried the dead with it. It is also supposed to have an effect on ones heartbeat and blood pressure. Some astrologers believe in the benefits of gold depending upon the position of sun in ones horoscope. Parents gift their daughters gold in the form of jewellery on her wedding. The value of diamonds also increase when set in gold.
Not much gold available in the mines: It is said that Gold was brought on the earth some 3.6 billion years ago by the collision of 2 meteors and it sunk deep into the surface of the earth, it is therefore impossible for us on earth to mine this gold by an easy mean.The cost of mining far exceeds its availability. That is why it is so difficult to get gold and increases its costs globally.
It is therefore the most sought after form of investment for centuries and will continue to dominate the minds of the investors. It is rightly called Dear Gold. The current gold standard will remain the most sought after literally and metaphorically.
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