The gold price aud has not been as dramatic as it was in 2020. In fact over the last couple of months, the price has fluctuated within the $100 range moving from $1,725 to $1,825 and back. With the recent space race by billionaires and the share prices of companies like Tesla and cryptocurrencies soaring to incredible highs no wonder buying precious metals like gold is isn’t so popular any more. Gold might seem a little boring compared to everything else that is happening in the world. Besides being an ideal investment vehicle, we need to look at the things that have captured mankind’s interest throughout millennia.

The science behind gold is interesting

The properties that make gold relevant in the scientific world cannot be found in other investment assets like Bitcoin or Tesla. The science of gold is affected by its origins – and no, we will not be talking about gold in mines, rather how gold even go to be there in the first place.

Gold is a celestial mineral. It literally comes from outer space. Gold fell on earth when stars collided with each other. The fragments of those collisions landed on earth, millennia ago.  The collisions created so much energy it essentially changed what could have been iron into gold.

Of all the popular metals gold is stable and chemically inert which means it does not react with other metals and its shine is permanent.

Why is gold still loved?

The uniqueness of gold can also be based on other reasons. You can divide gold into smaller pieces and sell them according to your needs. You won’t have to sell everything, just enough to raise the amount you need.

This might sound like too much work but think of it in terms of diamonds. If you took one large diamond and cut it up into different sizes, the total amount will add up to be the equivalent of that one piece of diamond you had before cutting it up into smaller pieces. No, it does not. You can separate gold and silver into smaller pieces and that won’t make the gold any cheaper. With diamonds, if you cut a large diamond into small piece, you reduce its value and price. This is why gold and silver have been used as currency for thousands of years while diamonds are not used as currency by any country. No one wants a currency that loses value when you try to make a change!

Gold is rare because:

• Gold was created in space when stars exploded in the formation of other stars and galaxies. The gold we are getting out of the ground has been there at the very beginning of our own planet.
• Gold is a heavy element and is lodged deep inside the earth’s core. This it’s next to impossible to find gold close to the earth’s surface which is why gold is found in certain place and not everywhere around the world. Mines can only get to the gold that is close to the surface, going deeper into the earth’s score where more gold can probably be found is unsustainable. This is why gold recycling is so important. 

Gold might not be as exciting as Bitcoin, but it is more stable and has been around long enough for most people to put their faith in it. You can leave gold to your grandchildren but Bitcoin is a digital asset, you can’t physically leave tangible bit coins for you newer generations. This means that being boring is part of what gold is supposed to be, the gold price aud creeps higher over time.