There’s no doubting the beauty of gold – virtually every civilization, and every culture, has placed a high value on gold because of its beauty.
Apart from its beauty, the value of gold is such that it is always seen as providing a safety-net when times get tough. Gold is used for practical reasons as well, in the micro chip and electronics industries, for instance, although the quantities are relatively small. Around 10 troy ounces of gold is the total amount of gold used in every 10,000 smartphones, in other words, if gold is trading at $1,500 an ounce, there’s some $1.50 worth of the precious metal in each phone. No pickpocket steals a smartphone just to get at the gold!
Practical use aside, why do we love gold so much? Before the advent of paper money, organised societies and cultures needed to devise some kind of currency that was more practical and easier to control, than what existed till then, which was a bartering system. Coins were an early forms of currency and if you had to choose a metal that didn’t corrode or wear over time, gold comes out as a clear winner. Other metals, such as copper, silver, palladium, platinum, iron, lead, and aluminium all have certain characteristics that rule them out when compared to gold. Copper, lead and iron will corrode after some time, which means they don’t physically retain their value in the most practical sense – something a coin obviously has to do. On the other hand, while aluminium may not be prone to corrosion, it feels too lightweight and flimsy to instil a sense of lasting value or security.
The so-called ‘noble metals’ like platinum and palladium would be a good choice – they won’t corrode, are non-reactive – if only they weren’t so rare. Their rarity makes them an impractical choice for use as an everyday currency because it’s asking too much to produce enough for mass circulation. Silver has often been used as a form of currency but also has more practical applications than gold, hence its widespread use in industry. Gold, however, has always been considered silver’s superior. Easy to work with or stamp, because it melts when heated, its unique properties literally shine through – gold absorbs light.
Gold has always been popular with investors and remains so in the major financial centres such as London, New York, Tokyo, and Dubai, to this day. People turn to gold in uncertain times, or buy gold for the sense of security it brings. If there was a worldwide collapse of the present currency system and society had to revert to some kind of basic barter system – guess what? Gold would the metal of choice, all over again. Throughout history, we’ve stuck with gold and nothing suggests that is about to change any time soon. Gold is sourced in abundant quantities to maintain supply, but rare enough to hold its value. Virtually every society around the world subscribes to the value of gold but not everyone with the means, knows how to get sound advice about investing in this most precious of metals. Prestige Wealth Solutions, in Dubai are able to offer such advice – so speak to one of the experts at PWS to find out how you can invest in gold.