Gold has captivated civilizations for millennia, with extraction dating back to 2000 B.C. in Egypt and the first gold coins minted in Rome around 50 B.C. This enduring allure stems from gold’s inherent rarity, durability, and intrinsic beauty. Beyond its aesthetic appeal, gold boasts remarkable properties that make it a crucial industrial raw material. Its malleability, coupled with exceptional electrical and thermal conductivity, makes it indispensable in various sectors, particularly electronics. For approximately 3,000 years, gold has also played a significant role in dental technology. However, the jewelry industry remains the primary consumer of gold, accounting for roughly 75% of its usage.
Gold mining occurs across all continents except Antarctica, where international regulations prohibit such activities. South Africa leads global gold production with a substantial 16% market share.
Global gold reserves have steadily climbed in recent decades, reaching unprecedented highs. Unlike other raw materials subject to depletion, gold’s virtual indestructibility ensures its continuous accumulation. The United States holds the largest gold reserves, estimated at around 8,133 metric tons (287 million ounces). Germany ranks second with 3,417 metric tons (120 million ounces), followed by the International Monetary Fund (3,217 metric tons/113 million ounces) and France (2,586 metric tons/91 million ounces). Today, the price of gold reflects this enduring value and consistent demand. The price of gold dramatically surged in recent years, surpassing $1,000 per ounce in March 2008 and reaching $1,600 per ounce by the end of 2011.
Investing in gold often serves as a safe haven during economic uncertainty, providing a crisis-resistant investment option. Investors can acquire gold through securities or physical purchase. Banks, coin dealers, and precious metal dealers offer gold bars and bullion coins. However, storing physical gold in banks often incurs substantial costs, unlike securities trading. Conversely, trading gold securities based on physical deposits entails trading or stock market fees. Alternatively, investors can participate in the gold market through gold certificates, gold funds, or gold ETFs traded on stock exchanges or via brokers, without acquiring physical gold.
Xetra-Gold presents another avenue for gold investment. This no-par loan, denominated in gold holdings, can be purchased and transferred on the stock exchange similar to shares. Today, the price of gold is influenced by various factors, making these investment options crucial for portfolio diversification.
Major gold trading hubs include Zurich, London, New York, and Hong Kong. Key stock 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 provide platforms for investors to monitor and react to fluctuations in today’s price of gold.
