Gold has captivated civilisations for millennia, with extraction dating back to 2000 B.C. in Egypt and the first gold coins minted in Rome circa 50 B.C. This enduring fascination stems from gold’s inherent rarity, durability, and aesthetic appeal. Beyond its ornamental value, gold’s unique properties make it a crucial industrial component. Its malleability, coupled with excellent electrical and thermal conductivity, makes it indispensable in electronics and dentistry. For approximately 3000 years, gold has played a significant role in dental technology. The jewellery sector, however, remains the largest consumer of gold, accounting for roughly 75% of its usage.
Gold mining occurs across all continents except Antarctica, where international treaties prohibit such activity. South Africa leads global gold production with a substantial 16% market share. Decades of continuous mining have resulted in record-high global gold stocks. Unlike other raw materials, gold’s near indestructibility and lack of consumption contribute to its ever-increasing global quantity.
The United States holds the largest gold reserves, amounting to approximately 8,133 metric tons (287 million ounces). Germany follows with 3,417 metric tons (120 million ounces), then the International Monetary Fund with 3,217 metric tons (113 million ounces), and France with 2,586 metric tons (91 million ounces). Recent years have witnessed a dramatic surge in gold prices. After breaching the $1,000 per ounce threshold in March 2008, gold prices soared to $1,600 per ounce by the end of 2011. This price volatility underscores the importance of staying informed about the current gold price.
Investing in gold offers a perceived safe haven and a hedge against economic crises. Investors can acquire gold through securities or physical purchase. Banks, coin dealers, and precious metal retailers sell gold bars and bullion coins. While physical gold ownership incurs storage costs, securities trading involves transaction fees. Investors can also participate in the gold market via gold certificates, gold funds, or gold ETFs traded on stock exchanges, eliminating the need for physical possession. Xetra-Gold, a gold-denominated non-interest-bearing loan traded on the stock exchange like a share, provides another investment avenue.
Major gold trading hubs include Zurich, London, New York, and Hong Kong. Key exchanges facilitating gold trading are the New York Mercantile Exchange (COMEX), the Chicago Board of Trade, Euronext/LIFFE, the London Bullion Market, the Tokyo Commodity Exchange, the Bolsa de Mercadorias e Futuros, and the Korea Futures Exchange. These exchanges play a vital role in determining the gold spot price and influencing current gold price trends. Understanding these market dynamics is crucial for anyone seeking to invest in gold or track its current value.