Gold : The Real Money

Gold: The Real Money

Gold is a chemical element , highly sought-after precious metal that has been used for coinage, jewellery, and other arts throughout recorded history.

It is the most malleable and ductile of all metals, and can be easily shaped into various forms. It is also a good conductor of electricity and heat, which has led to its use in electrical wiring and electronics.

It is a transition metal and is one of the least reactive chemical elements. It is non-toxic and is not affected by air, water, or most acids.

How Gold is Used Today ?

Gold has many uses, some of the most common are:

Jewellery: Gold is used to make jewellery and other decorative items. It is often alloyed with other metals such as copper or silver to make it more durable.

Investment: Gold is considered a safe haven asset and is often used as a store of value. It can be bought and sold in various forms, including coins, bars, and ETFs.

Industry: Gold is used in a wide range of industrial applications, including electronics, dentistry, aerospace, and medicine.

Monetary: Gold has been used as a medium of exchange and store of value for thousands of years. The gold standard, which linked

the value of a country's currency to the amount of gold it held, was used in many countries until the 20th century.

Negative Effects of Gold Mining

Even though people consider Gold as a precious yellow glittering metal, there is a dark , heart-wrenching side to how it is sourced.

Gold is mainly mined in Africa, North America, and Australia, it is also mined in other parts of the world such as Russia, China and South America.

Gold mining can have a number of negative impacts on the environment, human health, and local communities. Some of the most significant ill effects of gold mining include:

Human health risks: Gold mining can also have negative impacts on human health. People who work in gold mines are at risk of exposure to dust, noise, and chemicals that can cause lung disease, skin disorders, and other health problems. In addition, people who live near gold mines may be at risk of exposure to pollutants that can harm their health.

Social and economic impacts: Gold mining can also have a negative impact on local communities. In some cases, mining companies displace people from their land and disrupt traditional ways of life. In addition, mining can create social tensions, and can lead to a decline in local economies as mining companies import labor and goods, rather than using local resources.

Abandoned mines: After mining operations have ceased, the mining site is often abandoned, and the mining company leaves behind large amounts of waste and debris, including hazardous materials such as cyanide and mercury. These abandoned mines can continue to harm the environment and human health long after mining has stopped.

It's worth noting that mining companies are now implementing more sustainable practices and environmental regulations, but the negative effects of gold mining are still present. Some of the efforts being done are the use of cyanide-free alternatives, reforestation and rehabilitation of the mined areas, and providing support to the affected communities.

Gold Price Calculation

The price of gold is determined by the global supply and demand for the metal, as well as by a variety of other economic and political factors. The price of gold is usually measured in US dollars per ounce, but it can also be quoted in other currencies.

The main way the price of gold is determined today is through the trading of gold futures contracts on commodity exchanges such as the New York Mercantile Exchange (NYMEX) and the Tokyo Commodity Exchange (TOCOM). These contracts are agreements to buy or sell a certain amount of gold at a set price on a future date. The price of these contracts is determined by supply and demand in the market, and it reflects the current and future expectations of the price of gold.

Another way that the price of gold is determined is through the trading of gold ETFs (Exchange-Traded Funds) on stock exchanges such as the New York Stock Exchange (NYSE) and the Tokyo Stock Exchange (TSE). These ETFs represent ownership in a basket of gold stocks or physical gold and the price of the ETF reflects the value of the underlying assets.

The spot price of gold is also used as a benchmark for the price of gold, it is the price of gold for immediate delivery, it is determined by supply and demand in the market, and it reflects the current market conditions.

Gold -> Paper Currency

Paper currency replaced gold as a medium of exchange because it is more convenient and easier to use than gold. The use of paper currency began to gain acceptance as a medium of exchange in the 17th century, and by the 18th century, it had largely replaced gold as the primary medium of exchange in many countries.

The main reason paper currency replaced gold is because it is more practical and efficient than using gold. Physical gold is heavy and difficult to transport, making it impractical for everyday transactions. In contrast, paper currency is lightweight, easy to carry, and can be exchanged quickly and easily.

Another reason paper currency replaced gold is that it is more easily controlled by governments. Governments can print as much paper currency as they need, which allows them to control the money supply and stabilize the economy. With gold, there is no central authority controlling the supply of gold, which can lead to inflation and instability.

Gold, The Real Money:

In spite of paper currencies replacing Gold all over the world, Gold will never loose its shine and it has its own value by itself.

It was once considered the real money for exchange and eventually it will be the real money accepted globally. Assume if the global currencies loosing value due to inflation, Gold will still have its own value.

For wealth creation, consider investing in Gold as well apart from other investment options.

Happy Gold Mining !!!!