Gold has always been the proven, quality, and long-term store of wealth for investors across the centuries. Its capability to be a strong store of wealth has been tested through harsh economic times and various financial crises to eventually prove itself as a stable investment asset and a hedging asset. Evidence reveals that human beings were largely impressed and fascinated by gold from thousands of years ago. In fact, gold use dates back to early civilizations such as Ancient Egypt whereby solid traces of its use were found on the capstones of the pyramids of Giza.

Gold has intrinsic value, unlike digital assets today. It’s ability to have intrinsic value originated from the fact that gold was able to provide efficacy as a medium of exchange. It has all the qualities of a stable medium of exchange such as being durable, divisible, homogeneous, scarce, and portable, among others. It also qualifies for many industrial uses due to its various characteristics such as:

  • It’s durable. It does not corrode or tarnish compared to other metals such as iron or copper, etc which tend to rust or tarnish when they are exposed to oxygen, water, or acids (though there is one acid which can dissolve gold).
  • Gold is an excellent conductor of electricity and heat and thus can be used as a conductive material in electronics.
  • Among all the elements, it’s one of the most ductile and malleable. On a scale of 1-10, with 1 being very soft and 10 being very hard, gold occupies the space between 2 and 3. Due to this fact, just one gram of it can be beaten into one square meter of gold leaf without breaking.  
  • Gold has the capability to allow sunlight to pass through while at the same time keeping the harmful infrared rays or heat of the sun at bay. It’s therefore used in most windows on skyscrapers and on the visors of helmets used by astronauts due to its excellence as a radiation shield.
  • Gold is also believed to have health benefits in colloidal form, and has nano gold particles have applications in the medical field as well.

Uses of Gold

For a long period of time now, gold has been tied by many with royalty, celebrities, and investors alike as a form of social status and also as a store of wealth. However, unaware by most people, is the fact that gold has far more uses in the real world. Below, is an illustration of the many functions of gold in the industrial, medicinal, technological, and social industries around the world.

  • Gold is used as Jewelry.

About 78% of gold in the world is primarily used for the creation of various jewelry and ornaments. Its desire to be won as jewelry comes from various properties of gold such as:

  • It has a very attractive and desirable yellow color.
  • It is rust and tarnish resistant compared to other metals.
  • It has a very high luster that is attractive to the eye.
  • It has a long history of being used for wealth and ornamentation.

Since gold is highly malleable, it’s usually mixed with other metals such as copper or silver to create a gold alloy that’s more rigid to withstand any pressure the jewelry may face (although pure gold is often used in several Asian countries and is plenty durable). It is estimated that countries such as China, Malaysia, and India are notorious for creating jewelry from gold than any other parts of the world, mostly due to tradition.  

  • Finances and Investing.

Gold has long been in use as a currency for around 6,000 years due to the fact that it is highly valued and is in limited supply. It is also durable, divisible, and portable. Its use as an ancient medium of exchange is supported by the numerous amounts of ancient gold coins that have been discovered, left behind by many ancient cultures. Nowadays, gold is used as an investment asset due to its capability to withstand difficult economic times such as a recession or depression, even often gaining in value during such times, as well as a long held stable price, and a long term appreciating value. It can be held as gold coins in smaller quantities and gold bars or gold bullions in larger quantities. Some experimental currencies have even put gold in a paper-like form. Of course gold can also be represented through stocks and paper notes, and with the rise of cryptocurrencies and tokenized assets, it can even be placed on the blockchain. It is currently one of the safest investment assets that can be added to an investor’s portfolio.  

  • Aerospace.

Gold has also found multiple uses within the aerospace industry. For the most part, gold makes up most of space vehicles’ circuitry due to the fact that it can conduct electricity and heat easily. It is also used to coat the space vehicles to provide a shield against the sun’s radiations and heat while at the same time regulating the space vehicles’ temperature. If gold were not used, most of the dark parts of space crafts would absorb a lot of heat. The visors on astronaut helmets are also coated with a thin layer of gold to help protect them from radiation and heat.  

  • Computers and Electronic Devices.

Gold has often been found in many electronic devices such as desktops, laptops, cell phones, televisions, and GPS units. This is mostly because gold is an efficient conductor of electrical charges. It also aids in the transmission of data at a rapid rate, and that’s why it’s found coated on many data cables and even expensive headphone jacks.  

  • Medicine and Dentistry.

Gold has been used in the dental industry for over 3,000 years. Even currently, it continues to be used in dentistry for crowns, fillings, and bridgeworks. It’s mostly fancied by dentists for this work due to the fact that it is:

  • Non-toxic.
  • Non-corrosive.
  • Chemically inert (mostly).
  • Easy to insert and shape.
  • Non-allergenic.

In the medical industry, gold has found some functionalities such as treating rheumatoid arthritis whereby a small gold solution is injected into the tissue to help reduce inflammation. Radioactive gold is also used in small quantities in radiation treatments and diagnosis such as treatment of various cancers.

Other bizarre uses of gold available nowadays include:

  • Creation of gold cigars.
  • As edible gold that is garnished on very expensive fancy dishes.
  • In paintings by painters to give the painting a more shiny look.
  • Used in certain skin beauty products such as face oils, creams, and massage oils.

Conclusion

The value of gold has been on an upward trend, meaning that its value is not going to back down any time soon due to its highly important value not only to the finance industry but also in many  other industries. At DinarDirham, we attempt to bring the various advantages of physical gold, including its value, and the advantages of cryptocurrency and blockchain technology together with our very own digital gold products such as DinarCoins, Gold Smart Contracts, and the BCMY wallet.

The DinarCoin will be pegged against the current gold spot price and will allow the holders to make investments, trade, and make payments to supported merchants. It will also carry the same stability and hedging capabilities of physical gold, unlike other cryptocurrencies such as Bitcoin, and can be exchanged at select locations for physical gold. The Gold Smart Contracts, on the other hand, will be backed up by specific physical gold pieces, and can be easily redeemed at any time at a fast rate since it’s based on the Ethereum blockchain platform. With DinarCoin, you can be ensured of a stable cryptocurrency, based on the gold spot price that takes away the extra costs of storage, shipping, transfer, and transportation.


References

https://www.bullionvault.com/gold-guide/why-gold

https://bebusinessed.com/history/the-history-of-gold/

https://www.sbcgold.com/blog/the-intrinsic-value-of-gold-and-silver/

http://www.chemicool.com/elements/gold.html

https://www.nytimes.com/1988/09/06/science/science-watch-gold-as-radiation-shield.html

https://goldprice.com/facts-about-gold