Tuesday, June 29, 2010

Precious Gold

Gold readily comes to mind when one thinks of precious metal. No one metal comes close to our consciousness and heart than gold. And most often, gold is associated with jewelries. Rightly so because gold is associated with the things we traditionally and personally value and treasure – gold jewelries, gold coin collections, gold plated watches to name few. Often these valuables are given to us as gifts and bequeaths handed to us from generation to generation. If so desired, the price of gold creations is not beyond reach for most of us. Many though buy them using their hard earned money to pamper themselves. Big gold medallions and necklaces can be seen displayed on the necks of returning overseas Filipino workers. The same are displayed by Indian women and even their men folk during important gatherings.

Gold in its pure form is soft and malleable. Metals like copper, silver, nickel and others have to be alloyed to make the gold perform its intended use. Alloys primarily make the gold harder and acquire metallurgical properties for its intended application. The gold content is measured in karats. Pure gold is designated 24K. Your gold jewelries could be 18k, 14k, 12k or 10k.

You guess it right! There are other equally important use for gold but nowhere is the use of gold most extensive than in the jewelry industry and art sector. Gold finds use in the Medicine and food industry? Yes not only during ancient times but in our time- Gold concoction injected to reduce swelling of some type of arthritis and tuberculosis and gold dusts for some delectable foods notably sweets and drinks. In electronics, due to its high conductivity, gold is used as electrical wiring for high power applications.( I come to know of power stations using gold contacts for their power switches.)

With the many high end uses of gold, no wonder it is one of the most sought after precious metal and the number 3 most expensive metal on earth. Alas buying or trading gold in bulk or substantial quantity is not that easy. Major industry players and big time individual investors trade and buy spot gold (gold available for transaction) in bullion or bars in the gold spot market. And there are rigid rules and procedures to follow which should be further explored by the interested parties.

One more use of gold. Financial institutions and wizards acquire gold bullion or bars from the some market as hedge against inflation or perceived future economic hardships. This is because gold price is relatively stable and the trend is for the gold prices to appreciate over time.

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