Gold: history, uses and quotation

Oro: che cos'è e un po' di storia

Gold is a metal with atomic number 79 and an unmistakable symbol on the periodic table of elements: Au.

Malleable, ductile but at the same time very resistant chemically, it can be nicked by only a few compounds. In nature it is found both in rock, bound with other minerals, and in water. It is estimated that there are about 20 million tons of it in the seas and oceans, but extraction would be laborious and very expensive.

The value lies in the scarcity and often difficult extraction processes, which also have some impact on the environment and workers (sometimes even children). For this reason, sustainable alternatives have emerged , which guarantee respect for nature and people.

But when did the adventure of this metal begin? We have to go back to prehistory, when our ancestors assigned gold a certain importance, employing it in the manufacture of jewelry and jewelry.

Going on, we know that more recent, but still ancient civilizations also made extensive use of this metal. One example is the Egyptians, who were able to create works that today attract millions of tourists to museums every year.

Greeks, Etruscans, Romans, but also Germanic peoples, Arabs and pre-Columbian civilizations: gold has always played a central role in the creation of statues, crowns, jewelry, scepters and much more. Works capable of leaving one open-mouthed by the skill with which they were made, without the use of modern tools.

Its physical characteristics and the preciousness attributed to it led it to take on a new form: the coin. Evidence and artifacts show how, alongside other less precious metals, gold was used to create the first coins. The debut in this capacity occurred in Lydia, in Asia Minor, at the hands of the ruler Croesus.

Even in modern and contemporary times, gold has maintained its status. In the past, it was the basis of thegold system (gold standard), which guaranteed the value of state currencies through reserves. Today, the system is outdated, supplanted by fiat currency, which leaves much to be desired; after all, these have nothing at their base, whereas at least at one time there were upstream reserves of a material deemed valuable.

Gold value as a safe haven asset

This material is universally considered the ultimate safe haven asset. This is because over time it retains its intrinsic value, regardless of market fluctuations: gold is always desired, synonymous with preciousness and rich in applications (we will see some of them later).

A “blond investment” is suitable for sheltering against inflation, as well as unfavorable market conditions. Moreover, it is also good as a form of capital protection in stormy times (tensions, wars, severe global economic crises…).

However, the investor is not obliged to invest in gold. After all, decisions are derived directly from strategy, which in turn is stability depending on one’s person. In short, risky and pushy trading is unlikely to give gold any room; indeed, it may be counterproductive. On the contrary, a more prudent investor who wishes to protect capital may find it suitable.

Let us reason and contextualize, because in any case, gold also has its own risks, as do investment instruments based on it. Let us consider what we want and think about what is happening, or what is likely to happen. Having done that we will know whether gold is a right asset for our profile.

Fun fact: In recent years, our beloved cryptocurrency bitcoin has also earned the title of “safe haven asset” from time to time.

"Gold is an excellent safe haven asset, but there is more..."

Gold as a raw material

Let’s go outside the investment field and see other applications of this raw material.

Gold is a versatile material, suitable for many purposes. It has excellent electrical conductivity, making it one of the best choices for making electronic components. Smartphones, tablets, computers, headphones, and other devices contain it, but don’t go splitting everything to look for it-it’s a minimum quantity.

Thermal performance is also good, although there are better performing materials.

We then know that applications in dentistry are varied: bridge creation, grafts and teeth have dominated the scene. Progress has since found better alternatives, but gold has been the standard in dental implants for years.

In the medical field, there are treatments such as aurotherapy, employed mainly to counteract the effects of rheumatoid arthritis. Gold thus proves valuable for our health as well.

Massive is the use of this prestigious raw material in space. For example, the visors of astronauts’ helmets are coated with gold so as to counteract the very strong solar radiation.

The applications do not end there, indeed: we have brought just a few examples, but there is much more!

How is gold doing today?

Real-time gold pricing can be monitored from the TradingView analysis portal (chart follows). You can also look up gold trends directly on Google and other search engines.

The price expressed in the gold quotes does not refer to the gram, but to theounce, which is approximately equivalent to 28.3 grams.

Popular curiosity for the europeans: but how much is 1kg of gold worth in euros? The price obviously varies and follows the market but, but you can calculate this figure easily and at any time: just remember that 1kg is equivalent to 35.27 ounces. Multiplying 35.27 by the value per ounce, here we get the price per kg.

How do you invest in gold?

To answer this question, one is truly spoiled for choice.

Of course, the mind immediately goes to the purchase of physical gold, supplied by banks and specialized companies. In fact, for investment purposes, this metal must be bought from venues that guarantee its purity (in carats), not from the gold buyer’s shop under the house, which deals in more used jewelry and of varying carats.

We deposit the precious metal at a safe deposit box, instead avoiding keeping it at home even if we had a safe available.

Physical gold has two problems: the first is precisely storage; the second is illiquidity, meaning that it is not immediately resalable if we needed it. For this reason, there are special instruments (such as dedicated exchange-traded funds and stocks) that allow us to invest in this asset, but without actually holding it.

Also good are cryptocurrencies such as PAX gold, with which we can position ourselves on the blond metal while avoiding so much hassle. Regulated and secure, it represents an excellent choice.

Then there are derivative products, but which by their nature should not be handled by people with little experience. In fact, they are complex tools and must be thoroughly understood before they can be used.

Our journey into the world’s most desired metal ends here. Keep following us for new interesting articles from the world of finance!