{"id":536,"date":"2010-12-08T17:59:19","date_gmt":"2010-12-08T17:59:19","guid":{"rendered":"http:\/\/www.itmtrading.com\/blog\/?p=536"},"modified":"2013-03-14T14:45:48","modified_gmt":"2013-03-14T21:45:48","slug":"why-is-gold-so-valuable","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/why-is-gold-so-valuable\/","title":{"rendered":"Why is Gold so Valuable?"},"content":{"rendered":"<p><strong>Gold<\/strong> has been on this earth since the existence of planet.\u00c2\u00a0Through years of mining, panning and digging most of the world\u00e2\u20ac\u2122s gold supply has been extracted.\u00c2\u00a0The initial findings were easier to obtain and didn\u00e2\u20ac\u2122t require the use of modern day heavy equipment.\u00c2\u00a0Now gold is much harder to obtain and it is more difficult to find new sites.<\/p>\n<p><a href=\"http:\/\/www.itmtrading.com\/gold_is_rare.asp\">Gold is rare<\/a>, in fact it is estimated that all of the gold ever mined can fit into a 20 yard cube. If you look at any natural resource that is in limited supply you will find that it has value.\u00c2\u00a0In fact that rarer it is the more valuable it is likely to be. Diamonds for example can be very expensive.\u00c2\u00a0The larger the diamond the more rare it is, and the more valuable. Gold is a natural resource that is in limited supply and has high demand.<\/p>\n<p>Gold has been a trusted medium of exchange for over 5,000 years.\u00c2\u00a0From Pharaohs and Kings to modern day governments, gold has been the world\u00e2\u20ac\u2122s real form of money for millennia.\u00c2\u00a0In fact even the United States Government considered gold to be money up until 1971.\u00c2\u00a0The reason that gold is considered to be the only real form money is because there is a limited supply of it.\u00c2\u00a0A countries money supply used to be equal to that of its gold supply.\u00c2\u00a0It kept central banks in check as they could not print money in excess of their gold reserves.<\/p>\n<p>Gold has uses beyond its use as a form of money.\u00c2\u00a0The electronics industry uses it in cell phones, computers and many other types of circuitry.\u00c2\u00a0The jewelry industry uses it in rings, necklaces, bracelets etc.\u00c2\u00a0The dental industry uses it in fillings.\u00c2\u00a0The demand for gold in these industries is strong and should continue to stay strong so long as the price of gold doesn\u00e2\u20ac\u2122t make it impractical for use.<\/p>\n<p>Gold is also used as an <a href=\"http:\/\/www.itmtrading.com\/how_rare.asp\">inflation hedge<\/a>, therefore it has investment demand.\u00c2\u00a0From hedge funds and central banks to individuals, people around the world create demand for gold due to its ability to keep up with inflation.\u00c2\u00a0This is why gold is so valuable today, demand is outstripping supply.\u00c2\u00a0Demand continues to grow as the economic crises worldwide continues on its path of slow recovery.\u00c2\u00a0Investors around the world are concerned with preserving their assets as nations <a href=\"http:\/\/www.itmtrading.com\/gold_long_term.asp\">print money<\/a> (digitize money) to bail themselves out.\u00c2\u00a0This simple set of circumstances has driven the  price of $252 an ounce in 1999 to $1,400 in 2010 for an ounce of gold.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold has been on this earth since the existence of planet.\u00c2\u00a0Through years of mining, panning and digging most of the world\u00e2\u20ac\u2122s [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[56,73,83],"class_list":["post-536","post","type-post","status-publish","format-standard","hentry","category-blog","tag-foreign-central-banks","tag-gold-values","tag-inflation"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=536"}],"version-history":[{"count":2,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/536\/revisions"}],"predecessor-version":[{"id":13533,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/536\/revisions\/13533"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}