• London gold: 2029.28 +0.77%
  • HongKong gold: 18829
  • Shanghai gold: 401.57 -0.55

common sense about gold

Main applications of gold

1. International reserves This is based on the money commodity attribute of gold. Because of its excellent characteristics, gold was historically used as currency, with functions such as unit of account, means of circulation, means of hoard, means of payment and universal money. Since the decoupling of gold from US dollars in 1970s, its functions of money have been reduced while certain functions among them have been remained. At present, gold still plays an important role in the international reserves of many countries, including major Western countries. The official gold reserves of the countries are mainly used for international payment. The gold reserve of a country is closely linked with its ability to pay external debts. The central banks of the countries and international financial agencies are engaged in transactions in the world gold market to maintain a certain proportion of gold reserves.


2. Jewelry & accessories Luxurious gold accessories are always a symbol of a person's social status and wealth.


3. Wide application in industry and scientific technology Due to the unique physical and chemical properties, gold has an extremely high corrosion resistance, a good electrical conductivity and a good thermal conductivity; the atomic nucleus of gold has a relatively large effective cross section to capture neutrons; its ability to reflect infrared ray is approximately 100%; gold alloys have various catalytic properties; gold also has a good manufacturability so that it can be processed into ultra-thin foil, micron wire and powder easily; in addition, it can be plated on the surfaces of other metals, pottery and glass easily; gold can also be fused and forged easily at certain pressure and can be made into superconductor, organic gold, etc. With these advantages, gold is widely used in the most important modern high-tech industries such as electronics technology, communication technology, aerospace technology, chemical technology, medical technology and computer science.


4. Application in investment On the one hand, people can make profits by virtue of fluctuating gold price. On the other hand, people can choose between gold and other investment products as the case may be. The demand for gold increases when the US dollar depreciates and the oil price rises; the demand for gold decreases when the stock market is in a bullish mood and attracts a lot of money.

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