Gold is not just another shiny pretty thing…
Aside from the glitz and glamour associated with gold, have you ever wondered why the value of gold seems to keep going up without large fluctuations while currencies, such as the the major ones including the dollar, euro, and yen shift constantly? Below are some reasons why the monetary value of gold may increase over time and remain stable compared to other forms of currency.
Gold is not an unlimited resource
Only about 8,333 cubic meters of gold has been mined in the history of man kind, enough to fill about two olympic-sized swimming pools or .07% of the empire state building – not a whole lot. To put things in perspective, the average amount of gold produced every year in the world is roughly 4.3 meters on each side, about the size of an average living room.
Gold is Tangible
“It’s not like a piece of paper driven by shaky politicians and unstable governments,” said a marketing strategist, Phil Streible. Gold cannot be printed on demand and neither can one expect to find another tonne of gold within a week’s deadline.
Gold Is Low Risk and Offsets Volatile Times
When currency and other forms of trading show significant instability as it has been recently, some look to gold as a stable form of investment and hedge against volatile investments.
Gold is Useful
Aside from its aesthetic properties, gold has technological uses because of its malleability and conductivity to electricity, to name a few. However, many argue that the use of it in modern technology can be replaced by less expensive alternatives.