Or 10 Reasons You Should Buy a Gold Necklace
Ah! The beauty of the luster of Gold – dense, soft, shiny, and it will always keep its bright yellow color. But, not only is Gold beautiful, it also is the most malleable and ductile metal known to mankind.
But, have you noticed the price of gold lately? It has been going up for the last year as problems with not only the domestic economy, but also the international economies increase. Gold has been used as a standard for currency for centuries, and it is still being used as a hedge when there is trouble. But, is it a good time to buy gold? Will it maintain its value? And, why gold and not some other metal, or thing’ to judge the value of all goods and service?
Let’s take a look at the excellent argument for gold:
1. Standard for all currencies for 6000 years – easily divisible, durable, the values keep increasing. Went to paper because gold was too cumbersome and could get damaged – but also because you can print money (is there any ink left in the U.S.?)
2. Gold is the most malleable and ductile pure metal on the planet earth. Which means it can be shaped into jewelry, wires, leafs etc. easily.
3. Gold is used in cell phones – approximately $0.50 worth of gold is used in EVERY cell phone, and the phones are usually not recycled. The reason is: gold is resistant to oxidative corrosion and is an excellent quality as a conductor of electricity.
4. Dentists use gold. Do you have any gold fillings? Neighbors with gold front teeth?
5. Gold in outer space! Yes, NASA uses gold in the shields of heat-resistant suits, protective coatings for satellites, and in sun visors for spacesuits, because it reflects infrared light.
6. Gold is used in coins and jewelry because it is unaffected by air, moisture and most corrosive agents. It can also be pounded thin enough to be used as a protective coating.
7. Injectable gold has been proven to reduce the pain and swelling of rheumatoid arthritis and tuberculosis. Other medical uses for gold include: some cancer treatments, as a conductive coating to biological specimens and in research involving electron microscopy.
8. In photography, Kodak published formulas for several types of gold toners which would shifts colors to increase their stability.
9. In some aircraft cockpit windows gold is pounded so thin that it appears transparent, and can be heated for de-icing purposed.
10. In electronics, gold is used for wiring high energy applications, electrical connectors, USB cables, and semiconductor devices. In highly humid or corrosive atmospheres – especially for electronics that have a very high failure cost (think jets in Iraq) gold is used because it can with stand these conditions better than any other metal.
So, the argument for Gold is very strong! I am a huge fan of gold, and LOVE it in my portfolio. Having said that, at about $1000 an ounce I would be weary of buying gold mining stocks, as gold mining output has declined in the last several decades.
The best bet today would be bullion – or better yet, go and buy yourself a 24 carat gold necklace.
Enjoy your weekend of shopping!
Gwendolyn Beck started her finance career on the bond trading floor. She then moved to stocks and IPO with Morgan Stanley and personal financial planning with Wachovia. She wrote “Flirting with Finance”, a fictional novel, for a fun way for women to learn about finance through all the relationships and events we may have in our lives. “Flirting with Finance” is available through Barnes & Noble. You can contact Gwendolyn at www.flirtingwithfinances.com.