For thousands of years, humans have been fascinated with gold, going to great lengths to extract this rare metal from the earth. According to the World Gold Council, around 190,040 metric tonnes of gold has been mined around the world, and demand for this shiny yellow metal is only increasing with not only its use in industry and technology but also as a way of showcasing a person’s wealth. Gold is seen as a safe investment and a hedge against inflation, and if you do not currently have any gold in your investment portfolio, then it may be worthwhile considering adding it. Below are some reasons why you should jump on the gold bandwagon before it is too late.
The Amount Of Gold Is Finite
If you collected all the gold that has been mined by humans and melted it into a giant square, it would measure at over 21 metres, but it is essential to know that our gold resources on earth are not infinite. As we continue to mine this precious metal out of the ground, the remaining gold becomes too expensive to process, and eventually, the mines will run out of gold entirely. Scientists have speculated whether we could look to the heavens and find precious minerals including gold, however, even if there were deposits that we could mine on satellite planets or asteroids, we lack the technology to do so. Although technology does move quickly, it will be a long time before we can go searching the galaxy for mining opportunities, so you may wish to start looking to buy gold bullion online, while you still can.
How Much Gold Is Left?
Image Source: Pixabay
When you look at how much gold is left, there are going to be two separate figures – how much gold is left in total, and how much gold is easily accessible. If the extraction costs exceed the value of the gold, it is not worth mining it. Some estimates say that the 190,040 metric tonnes of gold that has already been mined account for about 77% of the total recoverable gold, which means there are around 54,000 metric tonnes of gold left to mine. Global output of gold is currently approximately 3,100 metric tonnes per year, so in less than 20 years, there will be no more easily accessible gold left to mine.
The Price Will Increase Significantly
Image Source: Unsplash
Investing in gold today could prove to be a brilliant thing to do, as with the demand for gold increasing and the amount of easily accessible gold to mine decreases, the value will increase significantly. It is simple economics, as market demand goes up, so does the price, and with new technologies requiring small amounts of gold, sometime in the future it may be so that gold is so valuable that it is used for jewellery only rarely.
Only the wealthiest people will be able to afford to use gold for jewellery, so if you have some money to invest today, it could be a wise investment move if you spent your money on owning physical gold. When the supply runs out, you can expect the demand to increase along with the price, leaving it as something the majority of people can no longer afford.
This article is published in a partnership with Mediabuzzer
Leave a Reply