What is Gold Used For?
We have talked about gold collectors, users of gold in previous post. Well now we are finally going to talk about the most common uses of gold so that you know who the big buyers and users of gold are. If you know this information, you then know if you need to hurry up and buy some gold before there is none left. Here are the most common uses of gold:
Gold in Jewelry: Until recently, jewelry constituted nearly all the demand for gold and stood far and away as the most common use of gold. The last several years have seen a rapid rise in the demand of gold as an investment however and today jewelry represents 'only' 45% of total yearly demand. The properties of gold - namely being malleable, ductile, noble, rare, and yes shiny - all help contribute to making gold a preferred metal in the creation and use of jewelry.
Gold in Investing: The second most popular use of gold is in the form of investment through various tools such as ETFs, futures trading, and bars/coin investing with 45% of yearly demand going way of investors. Regardless of whether you expect gold prices to explode or not, you'd be hard pressed to argue against gold's function as a store of value which in today's inflationary markets is certainly an investment that people are starting to consider more and more seriously.
Gold in Banking: Related to the point above, central banks have once again become net buyers of gold and are starting to fill up their coffers with gold bullion (now a tier I asset with the Basel III bank regulations) to serve as reserves with the US Dollar starting to lose its credibility. In Turkey, commercial banks can hold gold to meet their "required reserves" and as a result are in the process of acquiring gold from citizens who are estimated to hoard gold worth anywhere from $100-$300 billion. Through a majority of recorded history, especially since around 560 BC and the minting of the first gold coins, the yellow metal has been a preferred form of money across most civilizations. The last century has seen a shift to paper fiat money and away from gold, but recent global financial woes has once again increased the appetite for the precious metal to serve a monetary function.
...More at Modern Uses of Gold
With knowing the uses of gold and how much it is being used, it is best to try to get your hands on it quick.
Gold in Jewelry: Until recently, jewelry constituted nearly all the demand for gold and stood far and away as the most common use of gold. The last several years have seen a rapid rise in the demand of gold as an investment however and today jewelry represents 'only' 45% of total yearly demand. The properties of gold - namely being malleable, ductile, noble, rare, and yes shiny - all help contribute to making gold a preferred metal in the creation and use of jewelry.
Gold in Investing: The second most popular use of gold is in the form of investment through various tools such as ETFs, futures trading, and bars/coin investing with 45% of yearly demand going way of investors. Regardless of whether you expect gold prices to explode or not, you'd be hard pressed to argue against gold's function as a store of value which in today's inflationary markets is certainly an investment that people are starting to consider more and more seriously.
Gold in Banking: Related to the point above, central banks have once again become net buyers of gold and are starting to fill up their coffers with gold bullion (now a tier I asset with the Basel III bank regulations) to serve as reserves with the US Dollar starting to lose its credibility. In Turkey, commercial banks can hold gold to meet their "required reserves" and as a result are in the process of acquiring gold from citizens who are estimated to hoard gold worth anywhere from $100-$300 billion. Through a majority of recorded history, especially since around 560 BC and the minting of the first gold coins, the yellow metal has been a preferred form of money across most civilizations. The last century has seen a shift to paper fiat money and away from gold, but recent global financial woes has once again increased the appetite for the precious metal to serve a monetary function.
...More at Modern Uses of Gold
With knowing the uses of gold and how much it is being used, it is best to try to get your hands on it quick.
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Curious about gold uses and where gold is going? Come on over, we have some answers for you so that you know who your are competing with when buying gold.
