Gold remains one of the most sought-after commodities around the world. The element has been used as legal tender on and off for centuries and its value remains strong within the shared consciousness of humanity, and humanity’s trading platforms.
Nowadays, investors can buy into gold mutual funds and gold-backed ETFs to invest in the metal ⎼ but you can always go old-school. The trick here is making sure that the purity of gold that you have on hand is as close to 100% purity as possible. If your gold is alloyed, any sale of that gold will be reduced by the other metal the gold is mixed with.
Because the value of gold is not volatile, it mostly maintains its value during times of global crisis like the current Covid-19 pandemic. Here are some tips, based on a scientific understanding of gold, which could explain why despite not being used as a form of currency on a daily level, gold remains such a stable form of investment:
- Although gold is one of the densest of all metals, it’s also the most malleable and ductile. A single ounce of gold (28 grams) can be beaten out to around 17 square meters. This means a little gold can go a very long way, and you should never worry about investing in gold by the ounce. It can always be shaped into whatever is necessary at the time, including being melded together into larger weight pieces, or alloyed with other metals.
- Gold does not tarnish or corrode meaning that it can last a very long time under storage. In a more technical sense, gold’s stable isotope 197Au makes it the heaviest monoisotopic element, with a half-life considered as near-infinite. The element itself, of course, has no half-life but it’s good to know that even in a radioactive sense, this metal still comes out on top.
- Gold is not considered as an eco-toxic substance because biodegradation of gold under normal aerobic conditions is very poor, and there are little to no ecological problems when it’s released into the environment. Additionally, gold is insoluble and has minimal bio-accumulation and bio-availability characteristics.
From 1) you can see that gold will be used in electronics and as a part of industrial applications even in the future; 2) the stability of gold and its isotopes makes it extremely easy to store, smelt and manage; and 3) it’s an environmentally sustainable substance. An investment in gold based on more than just what the financial pundits tell you ⎼ an investment based on science ⎼ can only hold you in good stead.
And how can you apply the science of gold to the Covid-19 pandemic? Well, firstly, most people might be sitting with surplus funds because they can’t go out and spend money on fine dining, weekends away, and such things. Why not invest those funds in an evidently value-accruing asset that has not shown a trend in losing its value over centuries? And you don’t need to put down millions or thousands at a time. You’re investing by the ounce. You’ll be able to incrementally build yourself quite a nest-egg that you’ll thank yourself for in a few years’ time.