However, the lustrous and metallic qualities of gold, its relative scarcity and the difficulty of extraction have only increased the perception of gold as a valuable asset. One of the ways to invest in gold is to purchase a Gold IRA kit, which allows you to diversify your retirement portfolio with physical gold. This belief comes from the psychology of human beings and their desire to accumulate wealth, tangible assets and precious metals, among other things. Historically, gold has been used as a currency because it is rare enough to retain its value without being so rare that it is impractical to use. If man used common elements such as iron as currency, we would use very large and cumbersome coins.
If you were to use diamonds to buy bread, you would need impractical tiny diamond chips. Gold, on the other hand, has remained a viable currency for millennia. This is one of the reasons why all ancient civilizations thought gold was precious, because they knew it was precious even if they lost power or were conquered by another group of people. Factors affecting the supply of investment in gold include the level of confidence in the economy.
The economies of Europe and the United States at that time were still using gold (and silver to some extent) as standard currency. Gold consists of 79 protons, 79 electrons and 118 neutrons, meaning that even under extreme heat and pressure conditions, natural gold production is rare. For example, you can buy physical gold, buy gold shares in gold mines, or even buy shares in an ETF (exchange-traded fund) that tracks the price of gold. Once you've linked your currencies to gold and silver, your economy will be at the mercy of the quantity of them available in your area.
In recent decades, gold has become the preferred asset of many investors seeking to protect their assets. However, people have always believed that gold would maintain its value due to its scarcity and limited supply. Gold also served as money (gold coins) for these civilizations, helping them to grow economically and culturally. For almost all investors, holding gold is a wise decision because it has historically not been correlated with other assets.
The undeniable truth is that the value of gold will never be destroyed, central banks cannot inflate it, and governments cannot devalue it. The United States has about 8,133 metric tons or 2.3 billion troy ounces (one troy ounce equals 31.1 grams) of gold stored in the vaults of the Treasury Department. This means that when you see countries such as Ecuador, China or Russia buying large quantities of gold, they invest in gold as part of the return on their portfolio, just like any other type of investment. Gold is one of the most malleable metals on Earth, meaning that it can be hammered and shaped into different shapes while maintaining its original composition.
They also agreed to convert dollars into gold, making sure that there was enough gold to support all international trade.