Gold is the most useful mineral out of all minerals. Today, the primary use of gold is in jewelry. Gold can be drawn into wire, melted, and simply cast into intricate jewelry molds.Throughout history, society has used gold in jewelry to symbolize accomplishments, beauty, and wealth. But not all gold is in jewelry.
A Brief History Lesson
Let’s travel back in time! Back to the 1900’s when the United States implemented the Gold Standard Act. Gold, at this time, could be used as physical currency. The U.S government had assigned gold to a specific dollar amount and established gold as the standard for exchange for paper money. The U.S held a $35.00 per ounce price until 1971, when President Richard Nixon and his administration suspended gold as a form of currency and abandoned the Gold Standards Act.
infographic courtesy of Karus Chains
Popular As Currency As Well As Jewelry
For thousands of generations, gold has successfully preserved wealth. In today’s modern world, gold may not be used in your everyday transactions like it did in the 1900’s, but it still remains a popular form of currency. Why so popular? The simple answer is gold maintains its value unlike paper currency or coins. With inflation, the cost of living increases, prices rise, and paper money loses its purchasing power. Because gold maintains its value, it is often a popular “safe haven” for investors when there’s economic uncertainty. In the United States, central banks and other several other organizations hold approximately one-fifth of the world's supply of above ground gold. So where is the most gold? The U.S.A!
Bitcoin as Good as Gold?
If you’re unfamiliar with what bitcoins are; bitcoins are a form of digital currency. They are not printed. Instead, they are created, held, and traded electronically via the internet. Along with not being able to print, bitcoins are not regulated by the government or central banks; so there are no taxes, tracking, or transactions costs. Completely anonymous and private. Many would argue bitcoin is a better system over the conventional way of storing gold, however, gold holds history and physicality. Bitcoins solely relies on the internet to function and many people still prefer tangible assets. Today, the biggest advantage gold has over bitcoins is it’s history. For thousands of years, gold has been the most trusted and accepted form of money. At one point, used as physical currency. Bitcoin is probably just a fad for now but it doesn't offer the security of gold.
Always a Demand For It
Gold has a long history when it comes to jewelry, often associated to wealth and culture. Gold in jewelry can be dated back to thousands of years ago, when kings and queens were ornamented in gold jewelry pieces. India accounts for one of the highest demands for gold jewelry during their wedding season, traditionally the month of October. In the U.S, 75% of brides receive engagement rings made from gold and diamonds. Check out our 10 facts about gold jewelry. Gold is the "wear forever" jewelry metal because of its resistance to rust and luxurious appearance. Perhaps you may not see gold in jewelry as the hottest trend this season, there will always be a demand for it; in and out of the fashion world.