The principal uses of gold include creation of jewelry, gems, coins and many other products. Gold has remarkable metallic properties that make it profitable to industry and a feasible monetary metal considering its resistance to corrosion, high electrical and thermal conductivity, flexibility and malleability, heat reflectivity and low toxicity.
Therefore, gold is not only used in jewelry but also in fabrication processes, including the manufacturing of coins and electronic components, in medicine, and in applications of various different ventures.
The supply of gold as compared to other precious metals is very rare. The quantity of Gold in the world is less and economic markets need gold in abundant supply to meet the demand. Rising price of gold and innovation of new technologies has allowed miners to dig deeper in the earth’s crust and explore those areas which were untouched before. Overall gold mine production has been on a constant rise over the last few years. We can’t ignore the fact that the supply of gold is facing real challenges in modern times when hoarders of gold become more enthusiastic about its future prospects (less likely to give it up) and new supply becomes increasingly hard to come by.
Sources of gold supply include mine production and the recycling of existing above-ground stocks. The biggest segment of gold supplied into the market yearly is from mine production.
The second largest source of gold supply is from gold scrap, recovered from gems and other manufactured items. may be an old piece of gold.
Gold has been in the process of mining from past few decades. Its economic and cultural importance is, it is used as a status symbol, as mechanism of exchange, store of values and also as the basis of investments. The assorted uses for gold, in jewelry, in technology and by banks and investors, means that across decades different sectors in the gold market have risen prominently at different points in the global economic cycle. This means that, typically, there is a sustained base level of demand which needs to be fulfilled by its supply.
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