What Is Gold?
Gold is a chemical element with the symbol Au and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile metal in a pure form. Chemically, gold is a transition metal and a group 11 element.
Gold is usually alloyed in jewellery to give it more strength, and the term carat describes the amount of gold present (24 carats is pure gold). It is estimated that all the gold in the world, so far refined, could be placed in a single cube 60 ft. on a side.
The most common gold compounds are auric chloride (AuCl3) and chlorauric acid (HAuCl4). A mixture of one part nitric acid with three of hydrochloric acid is called aqua regia (because it dissolved gold, the King of Metals). It is unaffected by air and most reagents.
What Is Gold Made Of?
100% of gold found naturally is isotope Au-197. 28 other isotopes can be produced artificially and are all radioactive. Gold along with silver and copper, form a column in the periodic table. They are found naturally and were the first three elements known to man.
Where Does Gold Come From?
Gold minerals form in hot rocks in and around volcanoes. Low sulfur, gold-bearing hydrothermal fluids form when hot rocks heat ground water. An example of these low-sulfur fluids are hot springs like those at Yellowstone National Park. The ores of Round Mountain, Nevada, are typical low-sulfur deposits.
Why Is Gold So Valuable?
Gold’s value is ultimately a social construction: it is valuable because we all agree it has been and will be in the future. Still, gold’s lustrous and metallic qualities, its relative scarcity, and the difficulty of extraction have only added to the perception of gold as a valuable commodity.
Why Is Gold So Special?
Gold is durable because it doesn’t corrode or tarnish, and it’s chemically very stable. Gold will always be able to be used as currency because its value will never depreciate. It will always maintain its value which is why people invest in gold.
Why Is Gold So Important?
Gold has moreover been used as money for exchange, as a store of value, and as valuable jewelry and other artifacts. Gold’s value is ultimately a social construction: it is valuable because we all agree it has been and will be in the future.
When Should You Buy Gold?
Gold has also historically been a strong hedge during times of financial crisis. Many experts cite the best time to buy gold as when inflation or a recession is looming since the value of gold tends to rise during these times.
Advantages Of Gold:
- Protects Your Wealth Against Inflation Risks
In terms of investment, there’s one thing you should understand as it can kill your investments in the end: inflation and it’s the rate at which money loses its value throughout the years. With this factor in mind, avoid having your investment in cash as it’ll only depreciate in value, particularly in a growing economy.
- Helps You Diversify Your Investments
If you’re wondering what types of investments to select for your portfolio, you can consider gold. The best thing about investing in gold is that it’s not affected by the stock market peaks and dips. Since gold doesn’t change its value in the same way as bonds and stocks, it can be an excellent way to diversify your investments.
- It Has Price Stability
Unlike the other assets in the market, the price of gold is stable and doesn’t go down by a massive margin even in times of crisis. As a matter of fact, whenever there’s a crisis in the financial market, people turn to invest in gold, and the prices may soar in no time.
If you compare it with the equity market, the stock’s price may even come to zero where there’s negative news regarding the company. It doesn’t happen with gold, and it’ll always have its value. It’s already been proven since centuries ago, which is why most investors prefer gold due to its price stability.
- It Has High Demand
Emerging markets like China and India have increased the demand for gold. Typically, this precious metal has a more prominent place in the culture of such kinds of countries. For instance, the gold demand in China has been steady since many investors prefer gold bars as another type of savings. In other countries, gold is valued during special occasions like weddings.
- You’ll Have Various Ways To Invest In Gold
When it comes to investing in gold, most people think about holding physical gold in the form of bars or coins. But there are other options for how to invest in gold.
One way to earn more profits from gold is to invest in a gold mining share. It enables investors to reap the advantages of gold price increases without the need to store physical gold.
If you prefer physical gold, you have to decide which form to consider. A gold bar looks impressive but tends to be awkward and heavy to store. You also have to invest in a safe or choose a bank to store your gold. If you want coins, you also have to determine whether you prefer freshly minted coins or collectible ones.
- Gold Doesn’t Deteriorate
When compared to physical investments like properties, gold doesn’t deteriorate. It won’t lose its price due to age. In fact, old gold ornaments have the same price as new gold ornaments. For this reason, investing in gold will give you good returns and security in the long run. It’s also seen as a status symbol in today’s society and it’s possible to get good liquidity over the years.
Gold Prices In Ghana:
| Gold Rates Ghana | Gold Price per Gram [GHS] in Ghana cedi | Low |
|---|---|---|
| Gold Rate per Gram 24k | 768.32 | 767.67 |
| Gold Rate per Gram 22k | 705.32 | 704.72 |
| Gold Rate per Gram 18k | 576.24 | 575.75 |
| Gold Rate per Gram 14k | 449.47 | 449.09 |