The History of Gold

The Importance of Gold’s History

It is important to understand gold’s past in order to fully appreciate its value, both as a commodity and as a predominant piece of our civilization’s history. For thousands of years, precious metals, and gold specifically have been a symbol of wealth. Today, gold is still viewed as a more secure investment during times of economic uncertainty.

Where Gold Comes From

Scientists believe that gold was forged within stars through nuclear fusion before the formation of our solar system. During Earth’s formation it is thought that gold arrived by asteroids that impacted the Earth’s surface. Gold has been accessible today is because of meteors that once battered the Earth. It can be found deep within the Earth, and is transported by elements such as earthquakes, volcanic eruptions, the movement of water, molten lava.

Where Has Gold Been Found

Gold can be found all over the world, within the land or sea. The largest known deposits of gold have come from Africa and India. Over the past few centuries, areas in North America have also become a rich source of the precious metal. Deposits of gold have been located in the United States, Canada and Mexico.

What Makes Gold Valuable

From times of developing civilizations, gold has always been perceived as a luxurious symbol of wealth and importance. It has become one of the most valuable precious metals. The combination of its lustrous qualities, its comparative scarcity, and the social perception that has been engraved through centuries, creates the concept of gold as a valuable commodity.

What Affects the Price of Gold

Gold prices are contingent on supply and demand along with all other markets. The price of gold can be affected when more is mined and added to the market or when supply seems scarcer. Other factors affecting gold prices are inflation, interest rates, and the jewelry market. Gold has been viewed as a safer option when it comes to diversifying retirement portfolios because of its high liquidity and the opportunity to hedge against inflation.

Learn more about adding precious metals to your retirement portfolio through your self-directed IRA. Contact us today to schedule an appointment.