Gold delivers value. It scores high among the precious metals. Its scarcity, wide industrial appliance and historical popularity make gold one of the most demanded commodities worldwide.
Here are the ten facts about gold an investor needs to know.
40% of the World’s Gold Deposits Are Held by Investors
Only 10% of gold production is used in technical applications. 50% of the reserves go to jewellery with the remaining 40% devoted to investments.
Gold is More Expensive Than Platinum
Priced at 1,329 USD, as of September 2016, gold makes the list of the most expensive metals in the world. Remaining in the lead, along with Platinum, which costs 1,025 USD per ounce. An ounce of silver will cost only you 19.17 USD.
Your Smartphone Contains Gold
The industrial sector is extremely attractive for investors. Here the demand for gold is huge. This metal is highly appreciated for its ability to conduct electricity without being affected by corrosion.
Any laptop or PC contains gold. Your smartphone has approximately 50 milligrammes of gold. The metal is used in medicine, from dentistry to surgery. Even suits worn by NASA astronauts are partially made from gold. Gold is everywhere.
We’ve Extracted Only 20% of the World’s Gold Deposits
80% still remains below the ground. There are lots of gold mines around the world. Mponeng, the largest one, is located in South Africa. It’s 2.5 miles deep, which is equal to the average depth of the World Ocean.
Investors Drove 15% More Gold in 2016
In the first four months of 2016, the global investments demand for gold topped 2,300 tonnes, growing by 15%. That’s the second largest leap in history as per the World Gold Council’s statistics.
The Largest Gold Owners Are… Banks
De Nederlandsche Bank possesses over 600 tonnes of the country’s gold. The Swiss National Bank holds 1,040 tonnes of Switzerland’s gold. The Banque De France owns over 2,000 tonnes and the Italian National Bank stores almost 2,500 tonnes.
However, the world’s biggest gold reserve belongs to the US government. The United States of America has approximately 8,000 tonnes of this precious metal.
One Can Not Just Start Trading Gold
To trade any kind of precious metals on commodities markets, a seller first has to meet certain requirements. For example, gold is traded on margin, which is a difference between the selling price and the production expenses. For gold, this bar is set at 4,455 USD. So, you won’t be accepted to trade gold priced at less than 4,455 USD.
Gold Is Purchased in Contracts
The CME Group is the largest stock exchange that trades gold. People buy and sell gold in the form of contracts. An owner of a gold futures contract has the right to receive the metal upon the agreed date and price.
Physical Gold is Also an Option
Investing in physical gold is becoming a hot trend. Some investors refer to the futures contract as virtual gold and prefer to purchase the real one. Most often it is sold as coins and bullion.
The procedure of purchasing physical gold is simple. You find a seller, buy gold and store it wherever you want.
1,500 USD is Around the Corner
Analysts of the Bank of America Merrill Lynch presume that in 2017 the gold prices will jump by 10% reaching the 1,500 USD mark.