Most investors would probably agree that it’s unwise to pour your money into something until you truly understand what that thing is. For example, you wouldn’t invest in real estate without first educating yourself about how real estate markets work, and you wouldn’t buy stocks without first knowing how the stock markets operate. In much the same way, you shouldn’t invest in gold without first exploring what a gold investment truly entails.
A large part of this, of course, is understanding the monetary and economic advantages that gold affords. Wholesale Direct Metals does a fine job helping investors understand these concepts. With that said, it might also prove helpful, or at the very least interesting, to understand some of the physical and cultural attributes of gold. Wholesale Direct Metals reveals a few surprising facts about gold, below.
Where Gold is Found
Here’s an example: Did you know that gold is found on every single continent? It’s true, but what’s even more surprising is the list of countries in which gold is most plentiful. The United States leads the pack; the top five is rounded out by Canada, South Africa, Russia, and Chile.
Why Gold is REAL Money
The definition of “money” is: a medium of exchange and a store of value. The US dollar is only money when there is a bank between you and that green paper paying you a rate of return better than inflation. When that stops, the paper dollar no longer is a “store of value.” Gold has returned far greater than the rate of inflation since 1971 when they closed the gold window. It is also a medium of exchange, therefore gold is real money whereas paper fiat currency is simply debt created from thin air.
How Gold is Used
Another intriguing consideration is that of how gold is used. As you might imagine, about half of the world’s gold supply is used for making jewelry. Meanwhile, some 40 percent of all gold goes to investors—perhaps to central banks who hold massive amounts of gold to hedge all the US dollars they hold in reserve. Finally, and perhaps most surprisingly, 10 percent of the world’s gold is used for industrial purposes.
The Physical Properties of Gold
In terms of the physical properties of gold, we all know that it is beautiful and lustrous. However, gold has some other attributes that are less well-known.
Did you know, for example, that gold is edible—and that it is used as a luxurious additive, in jams, jellies, coffees, and teas, particularly in Asia?
A large part of this, of course, is understanding the monetary and economic advantages that gold affords. Wholesale Direct Metals does a fine job helping investors understand these concepts. With that said, it might also prove helpful, or at the very least interesting, to understand some of the physical and cultural attributes of gold. Wholesale Direct Metals reveals a few surprising facts about gold, below.
Where Gold is Found
Here’s an example: Did you know that gold is found on every single continent? It’s true, but what’s even more surprising is the list of countries in which gold is most plentiful. The United States leads the pack; the top five is rounded out by Canada, South Africa, Russia, and Chile.
Why Gold is REAL Money
The definition of “money” is: a medium of exchange and a store of value. The US dollar is only money when there is a bank between you and that green paper paying you a rate of return better than inflation. When that stops, the paper dollar no longer is a “store of value.” Gold has returned far greater than the rate of inflation since 1971 when they closed the gold window. It is also a medium of exchange, therefore gold is real money whereas paper fiat currency is simply debt created from thin air.
How Gold is Used
Another intriguing consideration is that of how gold is used. As you might imagine, about half of the world’s gold supply is used for making jewelry. Meanwhile, some 40 percent of all gold goes to investors—perhaps to central banks who hold massive amounts of gold to hedge all the US dollars they hold in reserve. Finally, and perhaps most surprisingly, 10 percent of the world’s gold is used for industrial purposes.
The Physical Properties of Gold
In terms of the physical properties of gold, we all know that it is beautiful and lustrous. However, gold has some other attributes that are less well-known.
Did you know, for example, that gold is edible—and that it is used as a luxurious additive, in jams, jellies, coffees, and teas, particularly in Asia?
Gold is also resilient to most chemicals, and it keeps its luster even when you bury it for hundreds or thousands of years.
Gold is chemically inert. What this means is that it never rusts, and that it never causes irritation to the skin.
Pure gold is astonishingly pliable—so much so that you can pull it into sewing thread! It’s also so soft that you can mold it with your hands.
Gold is an amazing conductor. The Royal Bank Plaza Building, in Toronto, has its windows coated with a thin layer of gold, which reflects heat radiation and keeps the building warm in the winter and cool during the summer.
Important Things
Of course, none of these facts may sway you when it comes to the decision of whether or not to invest in gold. Perhaps the most critical details are the fact that gold is a stable and secure investment; that it helps you to hedge against the weakening dollar; and that it represents real value in a way that a bank note never could. Gold is not just an amazing substance, you see, but it’s also an astonishing addition to any investment portfolio.