Pierco Management Shows Some Great Details on Gold

As a complex foundation, here’s just what the typical person should know when it comes to gold - the element: gold is a chemical element with the symbol Au (that comes from the Latin: aurum "gold"). It's been a very sought-after precious metal for coinage, jewelry, and various arts ever since the beginning of recorded history. As a native metal it occurs as nuggets or grains in rocks, in veins or vein structures and in alluvial deposits. Much less commonly, it occurs in minerals as gold compounds, usually with tellurium. As metals go, gold is extremely dense, soft, shiny and the most malleable and ductile 100 % pure metal known to man. Genuine gold possesses a vibrant yellow color and shine traditionally viewed as beautiful, which it keeps without oxidizing in air or water.

Most apparent to most amongst us, gold is certainly one of the metals that has served as a symbolic representation of wealth and a store of importance all through history. It also has become linked to quite a few symbolism's and ideologies.

The calendar year 2008 was an easy year to recall, mainly because it marked a huge economic shift across the globe. In September of that year the global markets were on a path to what numerous professionals considered to be the brink of a meltdown. Not too coincidentally, prior to the September crash, the buying price of gold was still improving achieving a nominal high of US$1,004.38.

Gold has always been a priceless investment. It's been used throughout history as money by the Europeans in the later part of the nineteenth century, and also by the United States until 1971. As the U.S. system has at this point transitioned away from being backed by gold to a fiat currency (money which has worth basically due to government regulation or law), gold has assumed the role of the protector. As soon as money is printed out when in economic uncertainty, the overall value of cash is devalued as it floods the system. The reason gold is so important in these situations is that is signifies tangible asset, thus making it a hedge against inflation, deflation, or currency devaluation.

What makes gold unique to other commodities often is the role that speculation plays in its market value. Unlike other commodities, the annual production is very low compared to the accessible quantity which is stored above ground. According to the World Gold Council, of the 2,500 tons of gold mined during the last few years, about 2,000 tons goes into jewelry / dental production, and the rest goes to retail investor and exchange traded gold funds. Even with this minimal production, the cost of gold rose Thirty % just over 2010, a good example of how shifts in public sentiment have an impact on the price much more than annual production.

For those of us who aren’t seasoned economists and market analysts, we're able to evaluate the trend of gold inside the market to gain a general perspective about how people are feeling regarding the future in economic terms. Generally, we have seen that when gold increases in value, generally there is a feeling of unease. Conversely, as gold trends downward, it often correlates with a perceived return to balance in the marketplace.