The first reason is the physical properties of gold. It doesn’t corrode or tarnish and it can be hammered into very thin sheets, so for thousands of years copper has been used to make things like roofing, wiring and jewelry.

But over time those items tend to wear down or break because there’s a big difference between an atom of copper and an atom of gold.

The second main reason why Gold is the most valuable metal is because it has been found to be special somehow, beyond its physical properties.

Think about this for a moment. Gold has been considered the most valuable metal for thousands of years, but is there any special reason why? Is it because it shines like the sun or maybe it’s because it is rare?

If physical properties of gold or rarity were the reason it would apply to other metals such as silver and platinum (which are very similar to one another), but they don’t seem to carry the same value.

It also doesn’t explain why some cultures see Gold more valuable than others or why Gold is more valuable than other useful metals like platinum, aluminium and mercury.

 

 

What is the importance of gold in the world today?

Gold is an essential part of the global economy. Its value underpins currencies around the world, with many countries choosing to back their currency with gold.

Gold has also traditionally played a role in investments and central banks hold large reserves as part of their foreign exchange assets.

It is the most important barter commodity in the world, because it has always functioned as money.

Central banks hold bullion reserves to support currencies they issue; central governments hold gold stocks too.

We believe that the price of gold should reflect global uncertainties, and some analysts say that more than half of those uncertainties are related to government debt levels.

So, there’s a move towards more investment in gold? Absolutely.

Central banks in Europe and Asia have been buying aggressively in 2010, with about 500 tonnes of gold bought in aggregate by central banks. That was a record high for annual purchases by central banks.

This has helped support the price.

 

 

5 Common Reasons Why Gold is a Great Investment

Gold is considered one of the most stable FIAT currencies in history   Yes, gold has withstood all kinds of economic, financial, and social systems. The industrial revolution occurred without disrupting its value. Also, with paper money becoming widely used, gold still remained dominant until World War I when the US introduced the Federal Reserve System which began printing money without any precious metal backing, resulting in economic instability.   Gold is not dependent on any government or institution   Gold has been stable through all kinds of political and social changes. There were times when it was illegal to own gold during the World Wars and other conflicts such as the Great Depression or stagflation. However, the gold price kept growing.   Gold is decentralized   Gold does not depend on any central institution like other FIAT currencies. Central banks control the production of paper money to meet their own ends or sometimes due to the lack of production of gold itself if it is not available. Not so with gold! There are no printing presses for Gold or any other kind of central authority. Its value lies in how much physical gold is on the market. Dependence on mining companies makes this possible.   Gold helps protect your assets   Gold is a tangible asset with intrinsic value. In times of economic turmoil or crisis, investment in gold makes sense because it helps protect your assets from inflation and market volatility.   Gold is liquid   In the event of emergency, gold can be liquidated easily through pawn shops or trading companies with whom you deal directly. This is still the case in some countries where it is banned by the government. With gold, you do not need to go through financial institutions or banks.

 

 

What is the history of gold?

Gold was used as a currency in ancient times when money itself was based on gold. The value of gold remained stable for thousands of years, which meant that whoever had some could be certain of its value.

Gold coins were used to pay armies or workers who built great projects like the Great Wall of China.

The Romans started using paper certificates for gold that were easier to carry around, but these certificates had a gold value and could be exchanged for real gold whenever necessary.

The British Empire started taking over the world in the 1800’s and this was accomplished by cutting off countries from their native currencies and converting them to Pounds Sterling, thus creating a global economy based on Pound Sterling, Dollars or Yen.

The British Empire could print as much money as it wanted and this fuelled the financial boom of the 20th century. It was during this time that banks were invented and people started saving their money instead of carrying around sacks of gold everywhere.

 

 

Why is gold important?

Gold is one of the oldest mediums for investment.

It has been used as a commodity that preserves value and generates wealth for thousands of years, long before almost all other commodities.

Investors use it mainly to diversify their portfolios by adding an asset that isn’t correlated with traditional markets like stocks or bonds.

Gold prices are relatively low compared to the prices of many other commodities, which offers investors a chance to acquire assets at low prices.

 

Common Ways to buy physical gold today

Buy Gold Bullion Bars

Gold bars are available in several sizes. They also come in fractional sizes as small as one gram. Gold bars come from mints and refineries.

They are easy to buy and typically don’t carry a large premium over the spot price of gold. However, they don’t trade like stocks or other investment vehicles; instead, they’re traded in ounces. Learn more about investing in precious metals.

 

 

Buy Gold Coins

Gold coins are available in various sizes, ranging from fractional amounts to 1 kilogram. The most common coin size is one ounce, the same as with gold bars. Coins are sold by weight and .999 fine (24 karat) or better.

They are sold by the U.S. Mint, Royal Canadian Mint, Austrian Mint and other national mints.

The price of gold coins is typically determined by multiplying the current spot price times the amount of gold within the coin (1 ounce of gold mined today will always be 1 ounce of gold).

The premium over spot can vary significantly based on the difficulty of obtaining the coin. For example, today one can buy a 1 oz American Eagle gold coin at well below its intrinsic value, this is because it is commonly available.

On the other hand, the 2016 Year of the Monkey 1 oz Gold Coin has a much higher premium, this is because of its limited availability.

 

 

Buy Gold Stocks

As with any investment, it is best to keep your money in the market that’s performing the best. That means buying an exchange traded fund (ETF) that invests directly into gold companies.

However, several large gold mining companies trade on the stock market. While these can be good investments over time, it is important to remember that they are subject to all of the risks associated with owning a company’s stocks.

Additionally, many have high levels of debt which can imperil their actual holdings of gold.

 

       

Buy Mutual Funds or Certificates

While one can buy mutual funds that invest in gold companies, it is better to purchase certificates because the fee structure is more transparent.

Below are the Top 4 Precious Metal firms that we have chosen, as being amongst the most reputable Gold IRA companies in the industry.

Click here to read our reviews.

 

 

The bottom line

The value of Gold is not only in the metal itself, but also its rarity. It’s extremely rare to find an element that can be used for jewelry and electronics as well as currency all at once.

This makes it valuable on many levels – both physically and symbolically.

If you’re looking for a safe investment or want to give your loved one something meaningful, there are few better options than investing in gold bullion coins like American Eagles or Canadian Maple Leafs.

This is because they offer higher purity with lower premiums over spot price when compared to other precious metals like silver coinage or platinum bars.

We hope these insights into why Gold is so valuable have helped you understand what sets it apart from other investments.