Top 10 Gold Facts You Need to Know

Gold is a valuable asset, highly esteemed among precious metals due to its scarcity, versatile industrial applications, and enduring popularity throughout history. Here are ten essential facts about gold that every investor should be aware of:

1. Investors Hold 40% of the World’s Gold Reserves: While only 10% of gold production is used for technical purposes, 50% is dedicated to jewelry, with the remaining 40% allocated for investments.
2. Gold is Pricier Than Platinum: As of September 2016, gold was priced at $1,329 per ounce, making it one of the most expensive metals globally. Platinum, priced at $1,025 per ounce, joins gold at the top, while an ounce of silver costs just $19.17.
3. Gold in Your Smartphone: Gold is an essential component in the industrial sector due to its ability to conduct electricity without corrosion. Smartphones contain approximately 50 milligrams of gold, and it is also utilized in various fields, including medicine and aerospace.
4. We’ve Mined Only 20% of the World’s Gold: Approximately 80% of gold reserves remain unmined underground. Gold mines, like Mponeng in South Africa, can reach depths of up to 2.5 miles, equivalent to the average depth of the world’s oceans.
5. Surge in Gold Investments: In the first four months of 2016, global investment demand for gold rose by 15%, totaling over 2,300 tonnes. This increase marked the second-largest leap in history, according to the World Gold Council’s data.
6. Largest Gold Owners Are Banks: Several central banks hold substantial gold reserves. For instance, De Nederlandsche Bank possesses over 600 tonnes of the Netherlands’ gold, while the Italian National Bank stores nearly 2,500 tonnes. However, the United States government boasts the world’s largest gold reserve, with approximately 8,000 tonnes.
7. Trading Gold Requires Meeting Requirements: Trading precious metals, including gold, on commodities markets necessitates fulfilling specific requirements. Gold is traded on margin, with a set minimum price, such as $4,455 USD, below which trading is not accepted.
8. Gold is Traded in Contracts: The CME Group, the largest stock exchange for gold trading, facilitates transactions through contracts. Owners of gold futures contracts have the right to receive the physical metal at an agreed-upon date and price.
9. Investing in Physical Gold: An increasingly popular trend involves investing in physical gold, with some investors preferring it over virtual gold through futures contracts. Physical gold is commonly available in the form of coins and bullion, making the purchasing process straightforward.
10. Anticipated Price Increase: Bank of America Merrill Lynch analysts predict a 10% increase in gold prices in 2017, potentially reaching the $1,500 USD mark. This projection reflects the continued appeal of gold as an investment.

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