Journal

The Value of Gold

The Value of Gold

Gold is a valuable metal known for its resilience and eternal shine. Gold is chemically non-reactive, it won't corrode, and it's stayed virtually unchanged for millions of years. Because gold is ductile, craftsmen can stretch it without breaking, and with its good malleability, gold can spread easily into thin sheets. It is possible to pull one gram of gold into a 165-metre thin wire or hammer it out into a one-metre square sheet. And, while these are all great benefits of gold as a metal, what is it about gold that makes us place such high value on it?

Gold Is Tangible- you can hold gold physically, and it's valued by weight. Although you can also touch money or fiat currency, gold's recognised value is far more than the paper and metal used to make notes and coins. This means that gold has real intrinsic value. Governments enforce and regulate the use of regular currency, but it has no control in regulating the value of gold.

Gold Is Rare- although gold isn't the rarest and most expensive of all metals, it's still far more difficult to acquire than iron, aluminium, copper, or tin. The global gold production is around 3,000 tonnes each year, compared to silver at 27,000 tonnes.

Gold Is A Recognised Form Of Currency- millennia ago, traders and kingdoms used gold bullion as a form of payment. Fiat currency is backed by gold stored somewhere in a reserve. Unlike regular currency, gold is not affected by inflation, making it a more stable form of currency in countries affected by high inflation or hyperinflation.

Gold Is Not Printable- some governments have the bad habit of printing too much money and this drives inflation. Because the value of money drops, it becomes more expensive to buy commodities. Gold is not replicable because it must be extracted from mines.

Gold Is Luxury- gold chains, gold rings, and gold watches are all signs of luxury and success. The world's greatest watchmakers use gold in their top of the line timepieces to showcase the success of their customers. CIGA Design's latest wristwatch, the new Z-Series GOLD Edition, is a UK exclusive model plated in 18 carat gold with a deep matt finish.

CIGA Design UK is the exclusive, official supplier of CIGA Design products in the UK and is a trading name of MVI UK LTD, 85 Great Portland Street, First Floor, London W1W 7LT. Company Number: 06090209. Registered in England.