Gold mining

Throughout the centuries, people have continued to hold gold for various reasons. Societies, and now economies, have placed value on gold, thus perpetuating its worth. It is the metal we fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times.

Because of its unique qualities, gold has been the one material that is universally accepted in exchange for goods and services. In the form of coins or bullion, gold has occasionally played a major role as a high-denomination currency, although silver was generally the standard medium of payments in the world’s trading systems. Gold began to serve as backing for paper-currency systems when they became widespread in the 19th century, and from the 1870s until World War 1 the gold standard was the basis for the world’s currencies. Although gold’s official role in the international monetary system had come to an end by the 1970s, the metal remains a highly regarded reserve asset, and approximately 45 percent of all the world’s gold is held by governments and central banks for this purpose. Gold is still accepted by all nations as a medium of International payments.

Unlike paper currency, coins or other assets, gold has maintained its value throughout the ages. People see gold as a way to pass on and preserve their wealth from one generation to the next. Since ancient times, people have valued the unique properties of the precious metal. Gold doesn't corrode and can be melted over a common flame, making it easy to work with and stamp as a coin. Moreover, gold has a unique and beautiful color, unlike other elements.

KEY TAKEAWAYS

• * Throughout human history, gold has been used as a money-form in one way or another.
• * From gold coins to paper notes backed by the gold standard, only recently has money moved to a fiat system that is not backed by a physical commodity.
• * Since then, inflation and a declining dollar have meant rising gold prices. By purchasing gold, people can also shelter themselves from times of global economic uncertainty.
• * Gold levels may also influence national economies engaged in global trade and international finance.