Industrial purposes of gold

Industrial purposes of gold

Approximately half of the gold is used in jewellery and only 10% is used for industrial purposes. As a pure metal, gold is virtually unusable for industrial applications because it is very soft. Instead, it is widely used in alloys because the element has excellent electrical properties and is highly corrosion resistant.

Gold as an investment
Many investors use gold as an investment and about one-third of the gold is set aside for this purpose each year. Finally, central banks buy about one-tenth of the gold on offer each year and put it in the vaults. India and the People’s Republic of China are the largest buyers of gold.

Unsaid Library makes it possible to express your emotions using beautiful pieces of jewelry. Unsaid Library combines the most intens emotions with the most beautiful bracelets, rings, necklaces and pendants. You can find more of this on the website of Unsaid Library.

Because gold is stable in value, the demand for gold increases when the economy is in crisis and other investments are seen as risky. As a result, the price of gold rises in times of economic uncertainty, as people in the financial world also say that ‘gold loves instability’. When the economy improves, investors sell their gold again to return to other investments that offer a better return and of which the risk is again within limits, and the price of gold drops again. There is therefore a gold cycle that runs in the opposite direction to the economic cycle.

Consumption of gold
There are several drinks in which gold is used. This concerns 24-karat gold leaf.

Unsaid Library makes it possible to express your emotions using beautiful pieces of jewelry. Unsaid Library combines the most intens emotions with the most beautiful bracelets, rings, necklaces and pendants. You can find more of this on the website of Unsaid Library.

Gold liqueur:
Bridal tears
Danziger Goldwasser
Goldstrike
sake: Kimpun Sake
wine: Luxor champagne
There are also chocolates for sale, in which gold leaf is used. In some restaurants gold leaf is added to dishes such as desserts.
Gold is known as a food colouring agent under the E-number E175.
Price development

Gold bar of 1 kg
Until mid 1971 gold played a crucial role in the international financial system. The value of the currency was directly or indirectly expressed in gold and the central bankers determined the price of the gold. The price of gold was very stable for decades. The American president Richard Nixon put an end to this on August 15, 1971, his measure is still known as the Nixon shock. After the Nixon shock, the price of gold is a matter of supply and demand. On the international commodity markets, the price of gold is expressed in American dollars per troy ounce, which is just over 31.1 grams. In 1980 the price of gold reached a record of 887 dollars per troy ounce. In 2011 the price of gold reached a new nominal record of $1900 per troy ounce, corrected for inflation this was still slightly lower than the old record.

Unsaid Library makes it possible to express your emotions using beautiful pieces of jewelry. Unsaid Library combines the most intens emotions with the most beautiful bracelets, rings, necklaces and pendants. You can find more of this on the website of Unsaid Library.

Since the 1980 summit, gold has been in a so-called bear market. After the high inflation of the late seventies and early eighties, the price of gold rose to a record high of US$887 per ounce. After this, the price of gold dropped to a low of US$254 per ounce in 2001, before starting an unprecedented climb. This climb is due to the fact that worldwide it became clear to the large investors and economists that the United States was engaging in deep debt and financed it through its own currency through the Federal Reserve (FED). The euro crisis has reinforced the recourse. This shows that there is a resort to physical gold. Investment gold is supplied in coins, such as the Kruger ring, or in bar form. Nowadays it is also possible to invest in Gold exchange-traded funds (GETF).

Golden beetle
The material adjective of gold is golden. The older guilder is sometimes also heard. If something is covered with a layer of gold or gold paint, it is called gilding.