THE HISTORY OF GOLD IN INDIA
Since time immemorial, India has had a love affair with gold. It has been mentioned in the Vedas, Epics, Puranas, and Upanishads. It has been used as currency since at least 127CE when King Kanishka I issued the gold dinar.
When traders from Britain and Europe discovered India, and wished to take away spices to their own countries, they found themselves lacking in anything to offer in exchange. Indians were not interested in foreign currencies or foreign items, and so it was gold that became the currency of choice in these early days of trading. Despite having little in the way of gold mining activities when compared to Africa, India was able to accumulate a huge amount of gold without actually having to mine it.
GOLD AS AN INVESTMENT
Gold has become well known as a reliable commodity to purchase as an investment. Not only individuals, but large companies, and even governments hold their own reserves of gold. It can be useful as a hedge against inflation, because cash in the bank will be devalued over time due to constant inflation, while the gold price is expected to keep on rising. There have been some slight fluctuations in the price of gold which leads people to ask the question ‘is it safe to invest in physical gold?’ People have been speculating for years about the gold price hitting a peak and then finally crashing down. Nothing in this world is 100% guaranteed, but the majority of sources agree that gold is likely to remain reliable for the foreseeable future.
WHAT IS DIGITAL GOLD?
Most individuals do not possess their own armoured safe. Taking care of physical gold can be a constant worry. Unless you are somebody who wants to actually wear your gold, you may simply wish to have it locked away safely, only to take it out when it is time to sell it. Digital gold is a great new system for people with this mindset. What they actually buy is a digital certificate which entitles them the right to buy gold, some time in the future, of a specific quantity and at a specific price that is decided and agreed upon the day the deal is struck. With digital gold, the investor can be safe in the knowledge that his gold is always available when he wants it, but in the meantime he is not responsible for taking care of it, meaning it can not get lost or stolen. He also does not have to pay a monthly fee for any bank safe locker as many physical gold owners have to.
WHAT IS THE FUTURE OF GOLD METAL?
As the mining of gold slows down, the gold price in India continues to increase. Apart from the obvious visible desire for gold jewellery among Indian ladies, there is an actual technology driven need for gold metal. Gold is a very good conductor of electricity that does not tarnish with exposure to air. For this reason it is in high demand for use in electronics and for coating electrical connectors to ensure that good electrical continuity is maintained. If the mining and production of gold goes down as it appears to be doing, the need for gold will still be there. In contrast to other natural resources such as gas, which when exhausted will be gone forever, gold is unique in that huge amounts of it have been stashed by human beings. If the point is reached where mining comes to an end, there will still be a large supply of bullion and jewellery reserves that can be melted down and repurposed for critical electronic applications. This would presumably drive the price up even more.
GOLD IN THE AUTOMOTIVE INDUSTRY
Gold can be used as a component in the manufacture of catalytic convertors. Catalytic convertors are a component of almost all modern petrol and diesel engine automobiles. They are placed in the exhaust system where the toxic gasses produced by the combustion of petrol or diesel in the engine are forced to pass through them. The catalytic convertor has the effect of converting some of the harmful gasses to less harmful ones which is why they are mandated by many governments all over the world. As technology improves and the production of internal-combustion engines declines, the need to produce so many catalytic convertors will presumably decline too. Used convertors can be dismantled and stripped of their precious metals, which can then be used for other purposes.
THINKING OF INVESTING IN GOLD?
Gold is only one of many commodities that are traded on the stock markets. If you are interested in becoming an investor in gold, or a trader on the stock market you may wish to get some expert advice before doing so. You can get the expert advice you need from GOODWILL INDIA. Their customer services representatives are friendly and knowledgeable, and they are waiting to take your call on +91 80122 78000. With GOODWILL INDIA you are sure to find the answers to your questions.