Uses of gold
Money, jewellery and technology
Demand for gold can be divided into three main categories, comprising jewellery, technology and gold investment. This total demand can be split accordingly: 50% for jewellery, 40% for investment and 10% for technology.
Gold’s history as jewellery stretches back 6000 years, whilst gold jewellery today is synonymous with power, wealth and love. The purity of gold bullion jewellery is measured in carats, with 24 carat gold being the purest.
Whether worn by Roman Generals, Chinese warriors, or modern day footballers and musicians, gold jewellery remains a recognised status symbol.
For centuries Kings, rulers and central banks have founded their wealth with gold bullion investment. Gold has proven a sure foundation of nation or city states.
Today, with rising gold prices, central bank gold buying and concerns about the financial system, gold remains as important for people looking to secure their wealth. In today’s gold investment market the emerged powers India and China buy over half of each year’s 4000 tonne supply, whilst individuals across the world are increasingly seeking their own protection in gold
Different cultures bring different attitudes towards gold. Religious and wedding seasons in India and Chinese New Year bring huge spikes in gold investing demand, where many tonnes can be bought in a day. Amongst the great gold buying powers, China’s hunger to invest in gold surpassed that of India in 2011, as the Chinese seek to diversify away from money printing and over reliance on dollars.
Gold’s use in mission critical technologies stems from its durability and resistance to corrosion. Silver might be a better conductor, but when failure is not an option gold is used in specialist applications, such as: Space Shuttles, fighter planes, mobile phones and telecomms and life-saving medical equipment.
Did you know that the Hubble space telescope uses gold coatings for its electrical connections as protection against corrosion?