Gold is a chemical element that you will find mentioned in the periodic table having the symbol of Au and having the atomic number 79. It is a soft, ductile, shiny and malleable metal which is bright yellow in color having a lust. The lust of the metal makes it very applying to the eye. Gold is a transitional metal in group 11. Under normal condition gold is not reactive. Gold does not react with any acid except for nitro-hydrochloric acid. It even dissolves in mercury. Gold does not react when in nitric acid.
Gold is one of the valuable precious metals. It is use for making coins, jewelry and other arts since the beginning of history. The standard of gold often forms the basis for money. Gold was use to make coins during the olden days. The last issued gold coin was in 1932 in Unites States. A large number of symbols and ideologies are attached to gold. Gold because of its properties can be used and put to many functions. The malleability and ductility of gold allows it to be given any shape. Gold easily makes alloy with different metals. The alloys modify the gold making it hard. The alloys of gold can be made to control the melting point. It also makes exotic colors. It is a good conductor of electricity and heat. Infrared radiations are reflected strongly. Gold does not get affected by air and moisture.
Gold has lot of uses. It is considered as a vehicle of monetary exchanges. Pure gold is soft and therefore cannot be use a regular basis. So it has to get hardened by copper or silver. Pure gold id measured in 24 carat (k) while the alloy mixed gold is 22 carat (k). Gold is symbolized as a sign of purity, wallet, prestige, royalty. Gold is a precious metal and therefore it is made into jewelry. But pure gold cannot be used to make jewelry. Gold has to be alloyed with base metal like copper to make it hard so that desired shapes and designs can be made out of it. The content of alloy makes the jewelry.
Eighteen carat gold has 25% of copper and is referred to as rose gold. There is even blue gold. Gold alloyed with iron. The alloying of gold and aluminum is called purple gold. White gold is gold mixed with palladium and nickel. Other than jewelry gold has other uses like its medicinal value and it is also used in food to garnish. The sudden rise in the price of gold has made gold a great investment opportunity. The investment in gold is a very clever move made by many investors. Gold loans are also available that make it more valuable.
Why invest in gold?
Gold can be a fixed investment. Unlike currency, gold is not subject to inflation over the long term. The gold price has risen enormously in recent years. Gold is a value-fixed product and continues to increase in value. It is therefore a very special investment object.
A good alternative for investing in shares or currencies
Investing in gold is an excellent alternative to investing in shares or currencies. Historically, gold is very valuable and that is not always the case with shares or currencies. If you are looking for a long-term investment, investing in this precious metal may be something for you. Investing in gold is not only profitable for the long term, but also for the short term. Especially in times of uncertainty in the economy, more people are speculating in gold. In the short term this can cause fluctuations which can generate a lot of money.
Investment portfolios with gold are more robust and less volatile
Most investment portfolios consist primarily of shares and bonds. The risk factors of the gold price differ materially from the risk factors that apply to shares and bonds. In certain macroeconomic and monetary events, gold often behaves counter-currently to traditional investment classes. Investing in gold contributes to a favorable risk / return ratio of the investment portfolio. Statistically, investment portfolios containing gold are more robust and less volatile than non-gold portfolios.
How can you invest in gold?
1. Buying jewelry or evidence of gold
You can invest in gold in various ways. You can use part of your capital to buy gold coins, gold bars or jewelry. Please note that you must have a safe storage place where you can store the money, such as in a safe at the bank, costs are involved. A better alternative is to buy a certificate of gold. The gold is not physically due, but you do benefit from the price rises of gold.
2. Using a lever when investing
When you invest in gold, you can use a lever. If you make use of this, you can buy more shares with less money.
Future expectations invest in gold
The gold price has risen sharply in recent years. This is probably based on the fact that during an economic crisis the demand for a stable commodity such as gold increases. Some investors expect the gold price to rise further in the coming years. Because there is such a great interest in gold at the moment, the price of gold has risen considerably in recent years. According to some analysts, it should therefore be taken into account that there is a risk of a gold bubble.