Friday, June 10, 2011

Why Gold Is So Valuable

Gold is very important because many people believe it is. the value of gold is a cultural phenomenon. Its price is determined by a complex combination of factors, but not necessarily. Cultures that do not use gold or not to seek, not the value. Gold is essentially an investment product. He is regarded as a refuge against the currencies during precarious economic times.

Gold has been treasured throughout history. Cultures ranging from ancient Egypt to China for the indigenous people he appreciated for its beauty and its unique characteristics. Gold was so valuable that the pursuit thereof led to the atrocities of man, from colonialism to the war on slavery. The Americas were colonized largely as a result of gold exploration. Spanish conquistador Hernan Cortez destroyed the Aztec empire, and fellow Spaniard Francisco Pizarro destroyed the Inca empire while looting gold. Many human migrations, as the "gold rush" 1849 in California, are the direct result of gold discoveries. So many people have joined the area of ​​California that he won decades earlier state surrounding territories. Most paper money around the world was based on the gold standard until the 20th century. The Great Depression prompted most countries to leave the gold standard in 1932.

Gold is valuable because it has unique properties. It is a soft metal so it is easy to forge, but incredibly strong. It does not tarnish, rust or corrosion. Gold maintains a cosmetic luster over time. All these factors attracted cultures around the world to the gold treasure of art, jewelry and coins. Gold is an element. On the periodic table, it has the atomic number 79 and its symbol is "Au". It conducts heat and electricity as well. This makes gold useful for electronics and chemical applications. Virtually all computers in the world has gold in it.

Gold is traded in world markets. It is treated as a commodity with real metal never changed hands. He is considered a safe haven for investments during economic downturns. Investors believe that gold will always hold its value while the currencies and stocks could not. Gold is valued in jewelry and artwork. It does not cause allergic reactions and requires no maintenance to shine and look great. Gold is also valuable coins and ingots. Gold coins made by the ancient civilizations still survive today and are prized by collectors.

There are misconceptions about how the gold price is determined. It is not just about supply and demand. In fact, in 1999 and 2000 there was a strong demand for gold jewelry, but gold prices remained low. the value of gold is more influenced by global money markets. The price of gold is closely linked to confidence in the U.S. dollar. The value of gold increases confidence in the dollar declines. There is also a misunderstanding about the definition of "pure gold." Nearly all the gold in private property is an alloy, which means it is partly gold. It is normally combined with the silver or copper to make it quite difficult to handle. Eighteen karat gold is only 75 percent of gold. Fourteen karat gold is less than 60 percent of gold.

Gold is also valuable because of its rarity. It is estimated that all the gold in the world would form a cube measuring just 19 meters on each side. It is a remarkably small amount considering the size of Earth. More gold is mined all the time but the demand also increases because there are more people to be desired.

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