Gold has fascinated civilisations for millennia, with extraction dating back to 2000 BC in Egypt and the first gold coins minted in Rome in 50 BC. This enduring appeal stems from gold’s rarity, durability, and inherent beauty. Beyond aesthetics, gold’s unique properties make it a crucial industrial material. Its malleability and conductivity make it indispensable in various sectors, especially electronics. For 3000 years, it’s also played a significant role in dentistry. However, jewellery remains the largest consumer of gold, using approximately 75%.
Gold mining occurs on every continent except Antarctica, where international regulations prohibit it. South Africa leads global production with a 16% market share. Global gold stocks are vast due to gold’s indestructibility and the fact it’s not consumed, unlike other materials. This results in a continuously growing global supply. The United States holds the largest reserves, approximately 8,133 metric tons (287 million ounces), followed by Germany with 3,417 metric tons (120 million ounces), 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 seen surging gold prices. After exceeding $1,000 per ounce in March 2008, they reached $1,600 by late 2011. This price volatility highlights the importance of understanding current gold prices for investors.
Investing in gold is often seen as a safe haven and crisis-resistant. Investors can acquire gold through securities or physical purchase. Physical gold, like bars or coins, can be bought from banks and dealers. However, storing physical gold in banks often incurs significant costs, unlike securities trading. Conversely, trading gold securities based on physical gold involves trading or market fees.
Investors can also participate in the gold market through certificates, funds, or ETFs traded on exchanges or via brokers, without owning physical gold. Xetra-Gold, a no-par loan denominated in gold holdings, offers another avenue, tradable like a share.
Major gold trading hubs include Zurich, London, New York, and Hong Kong. Prominent exchanges include 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 crucial role in determining today’s gold price per ounce.