Precious metals are everlasting. Gold is synonymous with security and stability.
Gold is the epitome of human prosperity, durability and highly independent preservation of value..
One of the Most Valuable Precious Metals
Gold’s myth and popularity is deep-rooted in its long and prosperous history,thus reflecting people’s
future expectations in gold’s ability to retain its value across time.
One of the main motives behind every purchase of gold is the fear of deterioration of value of other
currencies – in particular, of paper money. Gold has the unique ability of being able to maintain
its worth – even while banks and countries are in dire financial straits and stock prices are falling,
gold can still be traded and sold.
Owning gold enables one to withstand even the harshest of crises and yet manages preserve its value
despite deep cuts in the economy and society brought about by structural and political change.
The Superstar of the Precious Metal Family
The scarcity of all precious metals, in particular gold, massively influences their price. Scarce
commodities usually command high prices. The relevant literature on the topic of natural resources/minerals
assumes that one ton of earth rock contains merely four milligrams (four thousandth of a gram) of
This therefore leads to a natural restriction on the global supply, or the availability of gold.
Demand, however, continues to grow. Access to gold has featured heavily in the 21st century. In addition
China’s decision to legalise the private ownership of gold is playing a relatively big role therein.
A large chunk of the world’s gold reserves is currently believed to have been exploited and either
stored in central and commercial banks or taken the form of jewelry/objects of value.
Never-Ending Demand – Who Needs Gold?
Gold is extremely versatile and can take many shapes or forms. It is used in many ways, spanning from
its use in private households as jewelry, as high-value gifts and as a lasting value "reserve",
all the way to burial goods in India.
It also serves as a reserve currency for central banks. In industry gold is deemed as being an essential
commodity, owing to its specific physical and chemical properties.
To obtain possession and to be able to protect the gold itself is not only of high importance to States
and financial institutions, but is also a clear goal for the individual.
Having personal property is for many people a prerequisite to carrying out and fulfilling their
life plans and being able to achieve their own goals.
Savings accounts, land and real estate, stocks and mutual funds along with life insurance and pension
provision products are just as essential as gold.
Will Gold be the Commodity of the 21st Century?
In the 21st Century, gold could get a new (old) meaning: The present age is characterised by a currently
unforeseeable long period of uncertainty. Challenges that were unheard of for many decades and were
certainly not discussed publicly, have forced us to change processes and bring about radical changes
in the global power structure.A growing proportion of the world's population considers itself to
again be facing existential challenges, especially in the industrialized states of Europe and the
The only thing that we can be certain of at the beginning of this century seems to be we must live
with the fact that the rapid and ongoing changes unto themselves are going to remain a part of our
world and economy. In times of uncertainty, gold is and was always a sought after good, therefore
making gold the raw material and commodity of the century!