Gold is without a doubt the most popular precious metal in the planet. It has been used for thousands of years as a status symbol to demonstrate wealth. It has been used to decorate temples, houses, tombs, and a wide variety of other structures. It has been used in circuit boards to improve the flow of electricity and it has been used as a currency for hundreds of thousands of years.
Everyone knows that gold is valuable. But few people know what makes this precious metal more valuable than other precious metals. What makes it valuable?
There are several different reasons that explain why gold has always been a favorite amongst human beings.
The first and most obvious reason would be its beautiful colors. In fact, the chemical symbol for gold is Au which is derived from the Latin word Aurum which literally means sunshine glow. It has a unique beautiful color unlike any other metal on the planet. The color would explain why ancient civilizations would use it as jewelry and to decorate various buildings.
The second reason is the fact that’s it’s easy to mold. In other words, it can be melted, twisted and hammered into a wide range of shapes and sizes. It also is incredibly useful for transmitting electricity due to its low electrical resistance. Yes, the computer that you use on a daily basis has some components that are made from pure gold.
The third reason is because it’s a rare natural resource that has a high demand. In fact, the world is starting to run out of gold which explains the gradual increase in price in the past few years. The law of economics states that when a product has a high demand and a low supply the price will naturally be high.
The main reason that gold is so popular is because we have been conditioned to believe that it’s valuable. If you take a brick of gold to an alien planet, it won’t be valuable, because nobody will know it’s supposed to be valuable, and no one will have a use for it. Gold is valuable because humans believe it’s valuable. The Aztecs didn’t place such a high value on gold. They built buildings and huge ornaments from pure gold just because it looked nice. Then the Conquistadors showed up, stole the gold, and sold it back in Europe, because they knew people wanted it.
People create the value for precious metals. If people want it, then it must be valuable.
So gold is the choice over other precious metals because there’s a massive demand for it. There has always been a demand for gold and there always will be. Unfortunately the earth is running out of gold. When the earth runs out of gold, the price for one ounce will be so high that the average person would have to save for a lifetime to purchase it.
As the monetary system becomes more volatile, people are moving their retirement assets away from government bonds and cash, and into physical gold. One of the best ways you can invest in gold is through your IRA (see http://investingingoldforretirement.com/investment/minimum-gold-purchase/ for more details). The best advice for people looking to retire comfortably is to look at their current IRA and consider a rollover or transfer into physical gold options.
Don’t leave your family’s financial future to chance. Make sure you are ready for retirement and invest in a physical gold IRA as soon as possible.