1: Gold definition
2: How gold traded
3: Gold vs other commodities
4: example of Gold
opening information:
Gold is a type of metal. Gold is an organic resource available from the earth. It is an expensive resource because it is very rarely found on the earth and is also an important jewelry item. Gold can be found in both liquid and solid. Gold ranks 79th in the list of elemental sequences.
So now let’s have a look at what is a Gold, how gold is traded in the public market for speculators and Investors, and what is the difference between gold and other commodities, finally one clear example of gold.
1: Gold definition :
Archeologists believe that the earliest evidence of human contact with gold came from the ancient Egyptians in 3,000 BC.
Gold metal was discovered in California on January 24, 1848, by James W. Marshall.
To this day, scientists believe that the nerves of gold are formed by the formation of ores through deep cracks from hot liquids in the earth’s crust, which is how gold is formed on Earth.
Gold is found mixed with other metals such as copper, silver, and lead. Approximately 20 million tons of gold are found in the total seawater within the earth.
The United States holds the largest gold reserves in the world by a wide margin, compared to other countries, at more than 8,100 tons.
China is the largest producer of gold in the world. Indian households have the largest amount of gold in the world, with approximately 24,000 metric tons.
People who love gold invest in such valuable gold. At Gold Mutual Funds, you can invest directly in mutual fund distributors online or offline with Gold ETFs or Gold Funds. so next let’s have a look at how gold works in the public market for speculators and Investors.
2: How gold traded
Gold is represented as a metal of one fluid thing, which would be taken from under the ground of more than 50 to 100 feet inside the land, which that rarity and shinning make the gold highly valuable and huge pricing in the public and societies.
Unlike a Currency, one kind of Currency couldn’t used in any other country, gold would be used in all the countries with the same level of value but a bit of difference in pricing.
Using the gold value the central government central bank or federal banks of each country would release or issue the gold in the public commodities market.
Like a stock company that trades based on the demand and supply of one market, gold is also traded on the supply and demand of a certain Investment.
If the gold is bought by more investors in one economy, then that country’s economy would become more demand for gold and be more valuable in one country than another.
Each of the gold markets is used and placed by its central government, one demand country of gold wouldn’t be the same as the other demand country.
If one nation didn’t have any big Investment and most of the people purchased land other than gold, the gold price would be very low when compared to any other demanded gold countries.
Using the listing of gold prices in the commodities exchanges, without purchasing gold physically, any people’s gold Investors could able to purchase and invest in gold within minutes or seconds.
At the same time, they are also allowed to sell that holding position of gold within their investment portfolio in a matter of seconds.
And most of them confuse gold and commodities, so let’s jump into the key difference in it anyway.
3: Gold vs other commodities
The difference between gold and commodities is, that gold is just one kind of metal like any other metal it doesn’t have any big value if such metal is precise and yields like normal irons. This gold is traded by the public people using the commodities market.
On the other hand, commodities are the one which are natural raw products, where these materials are offered by any of the people in the community, so gold also included in the commodities Category.
So the key difference between Gold and commodities is that gold became part of the commodities, to make you more clear about Gold let’s see one clear example below.
4: example of Gold
Say the US federal government could offer three kinds of metals, which these three metals are priced based on the rarest.
One metal is considered to be gold, the other metal is copper and the other material is iron.
Here all the metals are considered to be natural and land-yield items, so they all became commodities, and among all kinds of metals gold became one type of valuable metal.