Gold: About the Precious Metal Gold

Here at Silver Trading Company, we believe that gold is the second best investment of the decade, with silver being the first, for many reasons.

For centuries, buying gold has been recognized as one of the best ways to preserve one's wealth and purchasing power. Gold is a unique investment, one that has served mankind well for thousands of years. From the times of ancient Egyptians, Greeks and Romans to more modern times, man has been fascinated with the beauty and magic of gold, and with its power to change men's lives.

Gold bullion is real, honest money... and, many say, the best form of money the world has ever known. It is a store of value and a safe haven in times of crisis. Gold is rare, durable and does not wear out in the manner of lesser metals (or paper!) when passed from hand to hand. A small amount, easily carried, can purchase a significant amount of goods and services. It is universally accepted, and can be easily bought and sold around the world.

"We have gold because we cannot trust Governments." President Herbert Hoover

The symbol of kings and the treasure of nations, desired by all but possessed by few, gold has been cherished for all of recorded history. In the fifth century B.C., Aristotle pondered the question of the perfect medium for money. He concluded that gold is perfect money for five reasons:
1) Durability: Gold will not rot, break, crumble, decay, corrode or tarnish. Gold is unaffected by air, water, and even most acids.
2) Convenience and portability: A lifetime of wealth will fit in your pocket.
3) Divisibility: Gold can easily be divided into smaller amounts. An ounce of gold can be split 100 or even 1000 times.
4) Consistency: One ounce of pure gold is exactly the same as any other ounce, enabling worldwide trade and liquidity of gold - unlike unique items of jewelry or artwork.
5) Demand: Gold has a staggering variety of uses, even more today than in Aristotle's time. Its unique properties keep the demand high and the relative scarcity of the metal insures continued value.

Gold is still perfect money, perhaps more perfect money than money. Gold remains the time-honored standard of wealth that no other currency can match.

Gold Uses

Gold is an ancient metal of wealth, commerce and beauty, but it also has a number of unique properties that make it invaluable to industry. These properties include:

Resistance to corrosion
Electrical conductivity
Ductility and malleability
Infrared (heat) reflectivity
Thermal conductivity

Gold's superior electrical conductivity, malleability, and resistance to corrosion have made it vital to the manufacture of components used in a wide range of electronic products and equipment, including computers, telephones, cellular phones, and home appliances.

Gold has extraordinarily high reflective powers that are relied upon in the shielding that protects spacecrafts and satellites from solar radiation and in industrial and medical lasers that use gold-coated reflectors to focus light energy. And because gold is biologically inactive, it has become a vital tool for medical research and is even used in the direct treatment of arthritis and other intractable diseases.

The demand for gold in industry is steady and growing. The supply of gold from stored inventory and from mining operations is limited and will remain so. Demand from investors who want to posses this precious metal is steady, and increases during periods of world crises or instability. The result is a market with much more upside potential than down.

Gold is an excellent hedge against inflation, and protects earnings for the future. Modern investors can invest in gold the traditional way - by purchasing gold bullion in the form of bars or coins.