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Gold Prices Hit New High, A Few Things About Gold

by Audrey Hazel

The global computer, communication and consumer electronics are selling hot, so the use of gold has increased by 14% and the price has risen accordingly. Although there is a large amount of gold stored on the earth, the current mining capacity is limited, so the price remains high.

(Photo via unsplash.com)

Washington, DC (Merxwire) – Gold has the characteristics that other elements cannot replace, good corrosion resistance, electrical conductivity and thermal conductivity. The Atomic nucleus of gold can make the reflection ability of gold to Infrared close to 100%, so the use of certain equipment and machinery in the industry must be made of gold. Therefore, as the industry continues to develop and electronic products continue to be manufactured, the amount of gold has gradually increased and the price has also risen.

Products using gold as a material

In fact, life is full of “goods made of gold”, but most people don’t know it. For example, semiconductors, electronic products, medical treatments (dentists, cancer treatment, arthritis…) and automobiles all require gold as materials. Take the most important wafer in the electronics industry as an example. Each 8-inch wafer needs about 1.5 grams of gold. Products with storage functions require the wafer, such as Mobile Phones, Digital Cameras, Random Access Memory, and Motherboard. According to statistics, gold is in Electronics Industries accounts for about 70% of the entire industry.

COVID-19 affects gold prices

Affected by COVID-19, the global fiscal policy of more than 20 trillion U.S. dollars has been introduced, and various Stimulus Packages, Low Interest, Negative Interest, and various monetary policies have been continuously introduced. This has led to an increase in gold investment and hedge demand, and gold prices continue to hit record highs, And even rise to $2,000 per ounce. 

The Federal Reserve Board of Governors put forward the view that the current price of gold has surpassed the price in September 2011 ($1923.7 per ounce) due to the strain on the international situation caused by COVID-19. In addition, the United States has banned some Chinese apps and imposed sanctions on Chinese officials, which has made political and economic instability, so more hedge requirements are needed.

With so many Hedge tools, why did gold perform so strongly this time? Because the global COVID-19 has recently entered the second wave of infection peaks, the market has to re-examine the difficulty of the economic recovery. The main reason is still the loose fiscal policy introduced by the governments of various countries.

The amount of gold stored on the earth

There is a lot of gold on the earth. Geologist estimates that there are about 60 trillion tons of gold on the earth. If all the gold is divided equally among all human beings, then everyone has abundant resources. Where on earth is all this gold? These golds are buried in the interior of the earth and concentrated in the core, which humans cannot mine at all.

The source of gold on earth? The geologist of the University of Bristol right Ancient rock research in Greenland and other places found that between 4.2 billion and 4.4 billion years ago, the earth had experienced a huge Gold Meteor Showers. Some meteorites full of Gold, Platinum, tungsten and Lead elements continued to attack the earth for a long time, so the earth has a lot of gold.

At that time, the earth was still in Lava state, but Gold, Platinum, etc. were all heavy metals, so they continued to descend in the lava, and eventually most of them reached the core, and some reached the mantle, and the remaining gold remained in the crust less than 1%. Humans can only mine gold in the shallow crust, but there is too little gold in these locations. This is the reason why the price of gold has remained high throughout history.

Gold is a symbol of financial power, but it is also an important resource. Cherish resources! Love our planet!

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