Gold is So Costly

Why is gold so costly?

Gold Ornaments 

         Since the beginning of the civilization, man has had a deep fascination for this shiny, yellow colored metal, which symbioses affluence even today. Kings and emperors always attached great importance to gold. The statues of our gods and goddesses are decorated with gold ornaments.

          There are many reasons for this. Firstly it is a rare metal and is found in very small quantities. Its yellow color and sheen are very attractive, and being soft, it can be easily fashioned into beautiful ornaments. Lastly, it is not affected by heat, cold, wind and humidity.

          Gold is found in both free and combined states. To extract gold from its ores is a very costly process. An exception was a small rock of seventy-and-a-half kilograms found in Victoria, Australia, which yielded seventy kilograms of pure gold, but such rocks are very rare. Extremely small quantities of gold are obtained from gold mines. Seawater contains traces of gold, but its extraction is uneconomical. Gold also occurs as fine grains in sand and gravel.

          A significant portion of the world’s total gold production is used in ornaments. Gold is also used in medicines and dentistry. Till 1914, currencies of different countries were exchanged in terms of gold only. Even today, the entire global economy is based on gold. For instance, the government of India had to deposit India’s gold reserved in the bank of England as security against India not being able to repay an installment of its foreign loan. It is a soft and malleable metal; hence it can be easily converted into thin sheets. Thin layers of gold are coated on other metals also. This process is called gold plating.

          Other metals like copper, silver, zinc, etc. are mixed with gold to make it hard. It is not affected by most acids and alkalis, but dissolves in aquaria, a mixture of nitric acid and hydrochloric acid. Since the price of gold is consistently rising, people are investing money in gold and boarding the metal instead of the currency. Hence gold is regarded as a good security, and a sage investment.

          The gold mines of India are found in Karnataka, South Africa, Russia, Australia, Canada and the United States of America are the biggest producers of gold in the world.