Whether you are thinking of buying gold for investment GoldEssay or you are interested in the history of gold, you’ve come to the right place. Here, you’ll find the history of gold, the uses of gold, the gold price, and a discussion on the difference between gold and silver. You’ll also discover how gold can help you make a wise decision when it comes to investing.
Table of Contents
History of gold
Regardless of whether you’re a gold miner, a prospector or an armchair explorer, the history of gold will fascinate you. It has been a part of mankind’s evolution for thousands of years. Its beauty, shine and durability have led to its use as a material for jewelry and a medium of exchange for businessmen.
While a visit to the mines of California would have been a dream come true for some, others had their eye on the prize. In 1839, John Augustus Sutter migrated from California to Oregon. The ensuing boom saw farmers and trappers from California, Oregon, and Utah contributing to the gold fields. During this time, gold coins were touted as a means of transporting metal from place to place.
The history of gold is not without its foibles. In the early days of gold mining, the mines were remote, and miners were prone to dehydration and heat. For this reason, gold was rarely discovered in its pure form. Instead, gold was extracted in a series of mixed ores. This process resulted in a series of gold nuggets.
Silver vs Gold argument
During the heyday of the gold standard, the debate over unlimited coinage of silver was raging. Various claims were made about the best way to increase the money supply and improve the economy. One of the hottest topics was whether the government should mint paper money or use silver coins to back it. Several organizations sponsored campaigns in 1896.
The gold standard was first introduced in 1873. Its supporters argued that it would guarantee higher prices for everyone. Some economists warned against the less valuable silver coinage, which drove out the more valuable gold. However, the actual price ratio of silver and gold was considerably more in the former’s favor.
The debate over gold or silver coinage was also a heated topic during the presidential campaign of 1896. The Democratic Party had supported the gold standard during the administration of President Grover Cleveland. The GOP, on the other hand, argued that inflation was the only way to ensure that everyone had a fair shot at earning a decent living.
Principles of investment: gold as a safe investment
Whether you believe that gold is a safe investment, or you simply are looking for a hedge against a possible recession, there are some things you should consider. The price of gold is prone to fluctuation, but it is a good place to invest in when times are tough.
There are a few ways to buy and sell gold. You can invest in physical gold, or you can buy futures contracts. The former is a speculative investment, while the latter is more conservative. If you decide to invest in physical gold, you will probably need to pay for storage and insurance.
In recent years, gold prices have seen a surge, attracting individual investors, fund managers, and industrialized economies. However, it’s important to remember that gold does not produce cash flow.
As an investment, gold can also serve as a hedge against inflation. However, it’s worth noting that the current monetary system relies on debt, credit, and consumption. It may be time to look at a new paradigm.
Common uses of gold
Historically, gold has been used for ornamental artifacts. Its beautiful sheen, luster, and reactivity make it desirable. Today, it is used in a wide variety of applications. These include jewelry, electronics, medicine, and space.
The most common use of gold is in jewelry. 78% of the gold that is mined is used in this industry. It is often alloyed with other metals to make it harder. It is ideal for earrings, high-quality rings, and necklaces.
Another important use of gold is in electronics. Small amounts of the metal are found in almost all electronic devices. The gold coating helps to prevent corrosion inside the connectors. The metal also reflects heat and light.
Gold is used in the aerospace industry. A thin layer of the metal is placed on astronaut suits to protect them from harmful radiation. It is also applied to the cockpit windows of aircraft for de-icing purposes.
It is also used in solid-state electrical devices that operate at very low voltages. These devices are essential in many technological applications.
