For nearly 5,000 years gold has been one of the world\u2019s most\nprecious commodities and also one of the rarest. For example, if all the gold\nthat had ever been mined was gathered in one place it would fill less than 4 Olympic-sized\npools or form a cube of just 20 metres square.<\/p>\n\n\n\n
It was the Ancient Egyptians who first discovered that it\nwas a substance that was malleable enough to be formed into beautiful jewellery\nand rare enough to be valuable too but it wasn\u2019t until around 560BC that it was\nfirst used as a currency which could be standardised in value and provide an\neasy way to pay for services and goods.<\/p>\n\n\n\n
In 1792 the US Government introduced The Bimetallic Standard\nwhich decreed that all currency should be backed by either gold or silver. The\naim of this was to be able to control inflation \u2013 the probable consequence if\nmoney could simply be printed without an equivalent amount of a precious metal\nto support it.<\/p>\n\n\n\n
However, gradually, their commitment to this principle was\neroded and in 1972 the so-called Gold Standard was abandoned and has never been\nre-introduced.<\/p>\n\n\n\n
Why invest in gold?<\/strong><\/p>\n\n\n\n So that, very briefly, is the history of gold as a commodity\nand one which is just as relevant today as even the quickest examination of the\nDubai gold rate will demonstrate. But why, if it\u2019s no longer linked so directly\nto currencies, is it so important? Ironically, the answer is precisely because\nit is independent of the world\u2019s currencies, as well as the fact that it is a\ncommodity that, once mined, is never used up or disappears.<\/p>\n\n\n\n To examine the first point, it\u2019s great strength is its\nability to preserve wealth whereas inflation in currencies erodes it. So say,\nfor example, that ten years ago you bought $100 worth of gold. Today that $100\nwould be worth a great deal less in real terms while the gold would still hold\nthe same value, and possibly an even greater one. Plus, because the amount of\ngold is finite it is not affected by the laws of supply and demand in quite the\nsame way as other commodities such as oil and gas are.<\/p>\n\n\n\n The options available<\/strong><\/p>\n\n\n\n So, for anyone looking for a relatively safe haven for their\nmoney and as part of a diversified portfolio it would certainly be an\ninvestment well worth looking into. There are numerous ways doing this with the\nmost obvious being to buy gold coins or jewellery and owning the physical\nsubstance. Alternatively, speculating on it as a commodity is another, more\nabstract, way but one which still attracts many people.<\/p>\n\n\n\n Looking further ahead<\/strong><\/p>\n\n\n\n Looking to the future, there is one more important fact to\nconsider. At times of great economic uncertainty or upheaval gold has\ntraditionally held its value or, in the aftermath of the UK\u2019s Brexit vote and\nPresident Trump\u2019s election, seen it rise to a four-year high.<\/p>\n\n\n\n So, in a world today where the uncertainty seems to be the\nusual default position the signs are very positive that this is one commodity\nthat\u2019s never going to go out of fashion.<\/p>\n","protected":false},"excerpt":{"rendered":" For nearly 5,000 years gold has been one of the world\u2019s most precious commodities and also one of the rarest. For example, if all the gold that had ever been mined was gathered in one place it would fill less than 4 Olympic-sized pools or form a cube of just 20 metres square. It was the Ancient Egyptians who first discovered that it was a substance that was malleable enough to be formed into beautiful jewellery and rare enough to be valuable too but it wasn\u2019t until around 560BC that it was first used as a currency which could be […]<\/p>\n