Business Wire India
There are many commodities in the world market, with its prices going down and up according to the financial system's fluctuations. Such a commodity, which holds an important position, is gold. Gold plays a significant part everywhere, such as jewelry, technology, business, monetary system, trading, etc. China is the leading consumer of this yellow metal, followed by India, and then by the U.S.A. China's consumption accounts for about 94 metric tons per year. As for the world, it is said that about 2, 44,000 metric tons have been discovered to date.

History of Gold

Gold was discovered years before silver and diamond. According to the reports from the National Mining Association, the people of Eastern Europe used it to make decorative objects in the 4000 B.C. Again, it was marked as a path for international trading by the Egyptians in the 1500 B.C. Furthermore, it was the same Egyptians who discovered that they could blend gold with other metals and make alloys. In 560 B.C., the people of Lydia started minting coins, followed by the Romans, who also issued coins. Thus goes the story of the journey of this noble metal from country to country before affirming its position worldwide.

Why Does Gold Hold An Exorbitant Value?

This is a common question asked by people all over the world. Even though the yellow metal finds use as ornaments or jewelry, they have a significant monetary value. This is due to its versatility. People can use it as ornaments or sometimes exchange cash for gold in Gurgaon or can be used in trading. As the prices are surging, it can be a good commodity to mint some good money. So it can meet your financial demands more broadly. Also, in many places, it holds an emotional value. In countries like India, the ornaments made of gold have close relations with their values and traditions and are, therefore, widely used in celebrations.

Role in the World Economy

Gold does have a significant effect on the world economy. It can even act as a direct marker to assess how stable a country's economy is. This importance dates back to the existence of the gold standard. This is a system where the country's paper cash has a direct link with yellow metal. Consequently, people will be able to convert cash for gold in Delhi, leading to wider investment possibilities. Even though it is not in use currently, the role hasn't fallen down. Since gold is inflation-proof, the demand for metal increases during those tough times. When there is an increase in the price, countries that stand top as manufacturers and exporters strike the treasure.

In Investment and Trading

The precious metal is considered a safe asset by investors all over. Some of the reasons that push investors to hold gold are:

• It is considered to be the bear's asset of the world market. When values of all the other commodities go down during financial breakdown, that of its rises. So it will be a good place for people to invest in and make a profit. Once the financial crisis is released, they can go for other shares. Until then, they will not be facing losses.
• The Aurum is protected from deflation. This is a period when the price levels of goods fall steeply down. In this case, the inflation will be high as it will cross 0%. At that time, gold is the only commodity that will stand strong. Investment in gold is the only solution to counter the situation.
• There has been a constant decrease in the supply of gold for the past few years. The central banks reduced their sale. Moreover, production from mines has also decreased comparatively. Now supply is reduced. But the demand is still there. So it will be the right time for people who have the required holdings to use it.
• It is one of the key ways to diversify the investor's portfolio. This is because the accessory has an inversely proportional relationship with others, as already said.