To date, historians know neither the exact date nor the precise location of the beginning of gold mining. However, it is known that many ancient peoples specialized in large-scale gold mining.
The Uses of Gold Over Time
Over the centuries, gold was used in several ways. It was primarily used for trade, serving as a currency for transactions between merchants.
From the 16th century onward, gold had more value than silver (in the pecuniary sense). Thanks to it, wealthy people could carry out very large transactions.
Subsequently, in the 19th century, some European states made it their sole standard, that is, the reference metal for their economic system. It was only in 1976 that gold was demonetized, following an agreement between several major powers. However, despite this notable development, gold retained its significant financial significance. It is, in fact, one of the safest assets today. Central banks hoard large quantities of gold in order to keep its price stable. The price of gold is therefore closely controlled by these giant structures. The ultimate goal is to control irregular sales to prevent the depreciation of the yellow metal.
Supply and Demand for Gold
Demand for gold is increasingly high. This growing demand is driven by the new areas of application being discovered every day.
Regarding supply sources, three can be identified:
• Sales from central banks
• Recycling
• Mining production
Quantitatively, mining production remains the primary source of supply, with approximately 50% of its provenance available on the market. Gold recycling ranks second with a percentage of 35 to 40%. This practice has been increasing significantly for approximately two decades. The rapid growth in reuse is linked to certain contemporary considerations such as environmental protection and humanitarian concerns. Finally, the third factor is sales from central banks. Generally, these sales occur between banking institutions.
As for demand, it is also concentrated in three main areas:
• Jewelry
• Industry
• Investment
Jewelry alone accounts for more than half of this demand. Regarding industry, the applications are numerous. New ones are being discovered every day in the fields of electronics and nanotechnology, for example. This sector accounts for an average of 15% of the gold available on the market. Finally, the last consumption area relates to investment. This reason has gained momentum in recent years due to the numerous upheavals experienced by the global financial sector. Investment consumes approximately 30% of accessible gold, as many countries have returned to this more prudent investment.
What characteristics make gold so precious?
Gold, this noble and prestigious metal, is considered as such thanks to its specific characteristics. It is pure and dense. At the same time, it is ductile and easy to work, even by hand, due to its relative softness.
Gold has excellent corrosion resistance. This makes it the ideal metal for jewelry, fine jewelry, and hoarding. Like other precious metals, the artistic value of gold is undeniable. Gold is used both for works of art and for adorning the body. Gold jewelry is extremely sought after, as it is non-toxic to the human body.