If you had not realized how important gold has become in how you move through everyday life, you are not alone. Most people are shocked to find that they need gold and rely so heavily on this element. Gold is listed on the Scientific Periodic Table of Elements because it is one of the pure elements that we find in the Earth’s crust.
The periodic table of elements also notes that gold has a complete ring of outer electrons. For this reason gold is not likely to readily combine with other elements, and this is the reason that gold does not tarnish. When you consult other scientific tables you will find that gold is very highly conductive of electricity, and gold is very ductile, which means it can easily be drawn into a wire. When you combine the facts that gold is one of the best electrical conductors on earth, and that it is very easy to work with, and that because it does not tarnish it’s conductivity and connectivity will remain in time when lesser conductive metals deteriorate and fail, then you can see why electronics need gold. gold in electronics is essential.
From time to time I will hear gold naysayers say that “gold demand is down” or that “gold is a useless mineral” or that “industrial uses for gold is on the decline” and while they may be able to make that argument in a certain context, the truth is that technology is demanding gold, and people are demanding technology. So whether Americans bring home gold in their new 60 inch HDTV flat-panel televisions, or whether everyday citizens of India and China sock away gold coins and gold jewelry as savings, pure gold is in demand and that demand is not going to go away.
Does The Apple Watch Need Gold? If Not, They Make One Out Of Gold.
Apple’s new watch will offer gold on the outside too. In fact, because Apple has designed exclusivity into their products, part of buying an Apple product is buying a particular Apple product which expresses your individuality. In this case, being exclusive will cost a lot of money.
The most expensive model of Apple’s new watch is called the “Watch Edition” (I don’t think Apple has ever been great at naming their products) will feature a case made of 18 carat gold and is tentatively priced in the $10,000-$17,000 range. If that price seems staggering to you, you should realize that Apple has again done its homework, and there are plenty of very wealthy people out there that can and will buy this watch.
These may be the same people that spend $800 on a pair of shoes, or $5000 on luggage, or $120,000 on a car, or $1.5 million on a house, or $40,000 on a daughter’s wedding. When I stage this statement in this context, perhaps a $10,000 Apple watch doesn’t seem like a major purchase. Now, factor in that need gold for use in the Apple watch may be rarer than those who can afford to purchase it, and you can see how the introduction of this watch the market may affect the price of gold.
According to the article titled “Gold Price Will Rise As Apple Watch Boosts Demand” published by TheWeekUK.com, Apple has not disclosed how much gold it will use in each watch, but analysts have been able to examine the device and form opinions about how this watch may affect global gold need production and gold need prices. Here is a direct quote from the article:
“Even the most conservative sales projections and estimated raw material requirements suggest production of the device is likely to have an impact on gold prices, Money Morning suggests – and less conservative estimates suggest that Apple’s consumption could be vast. ‘If some of the sales and gold content projections are correct, the gold Apple watch could soon gobble up nearly 1/3rd of the world gold production,’ it says. That would constitute 746 tons of the precious metal, making it the third largest gold consumer in the world after the whole of China and India.”
Will Apple Need Gold, And Lots Of It?
So think about it. Apple has dominated the phone market. Apple has dominated the tablet market. Apple still heavily competes in the PC market, where for decades it has been the only competition to Microsoft. Apple has expanded into the home electronic market with success, and now ultimately Apple hopes to marry its technical innovations to the quality timepiece market. The quality timepiece market cannot be separated from the jewelry market, and to need gold cannot be separated from either market.
If you have been considering investing in gold for the first time, or buying gold coins online for the first time, then take a few moments to consider how Apple, who has changed the way we make phone calls, browse the Internet, or create graphics, may change the gold market. After all, since gold cannot be created in a test tube, supply and demand go a long way to establishing the gold price, and demand has picked up a new big player. Apple Watch= Need Gold.
Call ITM Trading at 1.888.OWN.GOLD or visit us online at ITMTrading.com to discuss buying gold.