Gold only has a symbolic value
Why gold is always a safe haven for investors
Read this article in English, French, or Spanish.
What is it that fascinates us so much about gold and why? Gold has always had a special place in the world and in our society, as it is considered the first medium of exchange and was used as an investment from an early age. The fact that gold is rare, does not rust like other metals, is pliable and shines beautifully, makes it the perfect precious metal. So let's dive into the history of this shiny element.
The story of gold
Gold was valued from the very beginning of human history. Even the ancient Egyptians processed gold into great pieces of jewelry and ornaments and used it to decorate the tombs of their kings.
The Incas and the ancient Greeks also considered gold to be valuable. Yes, even Sir Isaac Newton experimented with "alchemy" to turn base metals into gold for over 20 years - an area now considered pseudoscience.
As early as 700 BC Lydian traders (today's Turkey) produced the first gold coins for trading in goods and services. This invention changed the world forever, the use of gold increased and experienced a real boom.
When banks began to use paper money in the form of banknotes instead of physical gold towards the end of the 19th century, the history of money changed. Paper money began to circulate.
Why is gold still important?
We have been fascinated by gold since the dawn of mankind - not only because gold has cultural and symbolic value for us. Governments and central banks hold gold as reserves and instill a sense of trust in society.
Gold is also valuable in the manufacture of modern items, for example in the production of computers, awards and in dentistry. The first use of gold in dentistry was in Asia around 4,000 years ago! Scientists discovered golden dentures in ancient skulls that were popular with chiefs and political figures of the time. Even then, gold symbolized power and wealth.
So gold has always been important and people associate it with security and stability. Gold is the precious metal we fall back on when all other currencies fail. We even refer to gold in idioms: “This is worth gold” or “Loyal as gold” indicate the great importance of gold.
Why do central banks buy and own gold?
Central banks are big players in the gold market. As early as the 19th century, the first banks bought gold and exchanged it for paper money. From then on, the spread of cash increased rapidly. Banks typically hold gold as a reserve asset, asset, and financial security.
Its historically grown reputation confirms gold as a suitable investment, as the gold price usually rises in times of economic uncertainty. Gold holdings count as part of a country's foreign exchange reserves. Gold is seen as the last resort in the event a system fails and is therefore a preferred store of value.
In fact, central banks around the world are buying more gold than ever before. In 2018, central bank gold purchases reached their highest level since 1967. This trend continues as economic and political uncertainty mounts around the globe.
What you need to know before buying gold
When considering investing in an investment, there are a few things you should know first.
Gold is on the rise
At the beginning of the Corona crisis, you may have noticed a sharp drop in the price of gold by up to 12% as a result of panic selling. Since then, prices have risen steadily again. We can only speculate that this is because gold is a fallback for investors during times of economic uncertainty.
It is expected that gold will continue to be considered a safe investment when the world experiences an economic downturn.
When you buy gold from Bitpanda, you are buying physical gold
Bitpanda stores the equivalent of the amount of digital gold you bought in physical gold in a state-of-the-art security vault in Switzerland.
When you buy gold, silver or any other precious metal from Bitpanda, you are the owner of a certain proportion of the real physical metal. In this article you can find more information about how we store physical precious metals.
Gold production is decreasing
The world may be running out of gold. There are very few large gold deposits left to mine, and mankind has already mined all of the "easily mined" gold. That's why we're forced to dig deeper into the ground to find the tiny nuggets.
Over the past three decades, fewer and fewer gold deposits have been found and many investors take the opportunity to invest in precious metals in order to have the certainty of having physical gold.
Gold for your portfolio
In summary, it is clear that investors see gold as a safe “investment” because gold has always held its value throughout history. Gold is not only ideal for portfolio diversification, but is also a store of value in economically uncertain times.
We invest in gold because of its use as one of the first means of payment and possibly also because of its emotional connection with our ancestors.
Invest in gold and other precious metals today and polish your portfolio!
- Who uses ClickBank as a partner
- What are your top 5 Vietnamese dishes
- What if Singapore never parted with Malaysia?
- Japanese language What does okurishimasu mean
- Do you prefer Marcus Aurelius or Seneca
- How is Samsung hiring foreigners in Korea
- Ever wear cut off jean shorts
- Should we Chinese celebrate western festivals?
- How much do high fashion designers earn
- Affiliate marketing can be done on Facebook
- What is Safe Shop India
- Food companies should be blamed for obesity
- What is the business model of Googles
- Can adults learn new phonemes
- Grammar is important when writing
- Isn't patriotically wrong
- Which is the usp from adidas
- What does Nana mean in Italian
- Why did WeChat lose to WhatsApp internationally
- What makes some girls successful with men?
- What are the catchiest words
- How rated Yahoo Answers answers
- Today's student is really smart
- Which Disney films have racist scenes?
- Which date pages are popular in Brazil
- Why are Corvette owners so loyal
- How can I best invest 1000
- Required for Wordpress web hosting
- Will Quora be another Facebook or Reddit
- Are my parents narcissists
- What is B2B and B2C
- What is the best modern architecture