Rare Collectible Coins

Gold has been a symbol of wealth for centuries and its value has endured through time. Recently, investors have been flocking to gold investments to protect their other reserves in more volatile markets, especially in times of uncertainty and failing economic institutions.

Gold is a bright yellow, dense, soft, beautiful, shiny metal, which is malleable and ductile. It is resistant to corrosion in air and water. However, what makes gold so attractive that people will pay a lot for it? What in gold makes these investors so sure that their wealth is protected?

First, gold is an example of a rare metal. It is scarce. All the gold ever mined amounts to only 158, 000 tonnes, which is small for anything taken out of the ground. Annual production barely keeps up with the annual industrial demand, and only a few tonnes are available to investors. People who hold gold usually hoard it so there is only a small proportion of available gold that comes back to market. All these contribute to making gold highly valuable. It is expensive, and its value per ounce dwarfs the share of most of the stocks in the market.

In addition, gold is imperishable. Unlike paper money that is easily destructible, or bonds, shares and derivatives that are only a representation of worth, gold is a physical asset. It can be re-melted and remolded. It can be made into other shapes. It can be put in other objects. Yet it will still retain its value. Since it does not corrode in air, its storage does not require any other special treatment. Gold has shown it can retain its properties and remain valuable for centuries.

Thirdly, gold is a form of wealth that can be held, traded and transported. Sure, it shares this quality with other forms of currencies but, coupled with its other properties, it is remarkable that a thing that gives so much value can also be handled like a commodity and easily owned and stored.

Furthermore, of the precious metals, gold is the most prized metal. It is beautiful and unlike silver that has served as a tool of trading, gold has always been held as a reservoir of wealth. This is so recognized that, while silver is taxable, gold is not taxed anywhere in the world. Bullion gold the world over is highly regarded and is made with care, often with purity in excess of 99%.

Lastly, gold finds a lot of uses. Apart from being an instrument of investment and holding an intrinsic monetary value, it is used in jewelry, medicine, in the food and drink industry, in metalwork, electronics, automobiles, satellites etc. These extensive uses of gold make it indispensable and have served to increase its demand and price.

Because of all these, gold is popular in every field in which it is used. It holds both a monetary value and a sentimental value. As an investment vehicle, gold cannot be beat by another physical asset.