Gold: Arguments in Favor

Gold has been the fascination of human societies for thousands of years. For the majority of this time, gold has been used as a medium of exchange, thanks to its high value-to-weight ratio. The precious metal is undeniably beautiful for use in jewelry and gold plating and doesn’t rust or perish over time. The acquisition of gold has long been a method used by humans to demonstrate their power and wealth.

Gold is highly scarce, with only about 200,000 tonnes of the stuff having been discovered so far, so says the World Gold Council. For this reason, gold has historically also been seen as a great store of value that could be passed on through the generations. No corrupt or incompetent government can print more of the stuff to fund this or that endeavor via an inflation tax.

In more recent history and since the maturation of global financial markets, gold has become an established investment vehicle. Central banks and governments hold substantial sums in their reserves. The precious metal also has a track record of performing well as a safe haven asset/inflation hedge in periods of economic stress/high inflation. Its industrial use has also been rising, given its properties as a highly malleable superconductor metal. Small quantities of the stuff can be found in most mobile phones.

Given its physical properties, cultural significance and strong track record dating back thousands of years, those wanting to store value into the future can be pretty…

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