Human beings have been fascinated with gold since ancient civilization – as far back as 40,000 B.C. It is one of the most sought-after metals in the world—for good reasons, too.
The lustrous sheen and beautiful yellow color makes it a popular choice in the jewelry market. Aside from that, gold is a great conductor of electricity and heat, which is required in electronics.
And with the price of gold per ounce reaching $1,931.40 as of June 2023, the value of this precious metal remains high, making it an ideal asset for businesspeople and investors since it carries no credit risk and historically preserves its value over time.
Primary Uses and Applications of Gold
The uses of gold are many and far-reaching, ranging from medical to electronics and fashion applications. In deed, among all the minerals mined on earth, nothing is more valuable than gold.
Some of the top uses and applications of gold in the market you should know about include:
1. Financial Use
Gold is among the few currencies that have an intrinsic value. Its financial use dates back over 6,000 years ago when people exchanged goods using pieces of gold.
In the later years, these pieces of gold eventually turned into minted gold coins, which were used as currency until the early 1900s. While these are no longer widely used in transactions, gold coins are a convenient way to purchase and keep small amounts of gold. They can be issued in standard weights with values determined by the gold price per ounce or gram.
Gold bars, known as bullion, are also accepted as a financial backing for currency. This minimizes the cost of manufacturing and allows convenient storage and handling.
2. Electronics Manufacturing
Another important application and use of gold is in the manufacturing of electronic devices, such as cellphones, computers, and television.
Almost all electronic devices contain a small amount of gold inside. Gold is used in the switch and relay contact, in connecting wires, in connection strips, and in soldered joints of electronic devices.
Corrosion and tarnish hinders the flow of electric current and voltage. Since gold is an efficient conductor, it can carry tiny currents and voltage to power devices without tarnishing or corroding.
3. Jewelry Use
Gold is also highly valued in the jewelry market for its luster, radiance, and color. It's no wonder that gold remains as one of the top choices as a jewelry gift.
Among all metals, gold is considered as the most ductile and malleable. Because of this, it is easy to manipulate it into different shapes, forms, and designs.
4. Medical Use
In 2500 BC, Chinese physicians used pure gold as a medicine to treat a small number of medical conditions. These include skin ulcers, smallpox, and furuncles.
Gold alloys are used in medical implants and highly purified gold in dental fillings. The metal has even been used to treat a condition that prevents a person from completely closing their eyes.
5. Status Symbol
Gold is associated with status. This is the reason why crowns, medals, and trophies are made from this precious metal.
Gold is also associated with several positive qualities, such as purity. As such, religious symbols, including crosses and communion wares, are made with gold.
The uses of gold are not limited to just jewelry. Gold can be used in a wide range of industries, including the finance, medical, electronics manufacturing, and industrial sectors.
The peculiar properties of gold (including it's ductile, non-toxic qualities) make it a truly precious metal, with many applications across industries.
So, if you had any biases against gold, you might want to reconsider and instead try and tap into its many benefits.