10 Facebook Pages To Follow About How Much Is One Gold Bar Worth

Imagine yourself sitting at a flow swirling water in a pan hoping to see a tiny yellow glint of gold and dreaming of striking it rich. America has come a long way today, but gold nonetheless holds a place in our global market. Here's a comprehensive introduction to advice on where novices should start, the dangers and benefits of each strategy, and gold from how it is obtained by us to how to invest in it and why it's invaluable.

It was also hard to dig gold from the ground -- and the harder something is to get, the higher it's valued. Over time, people accumulate and store and started using the metal as a means riches. In fact, ancient paper monies were generally backed by gold, with every printed invoice corresponding to an quantity of gold held in a vault someplace for that it could, technically, be traded (this rarely happened).

So the link between gold and paper currency has been broken These days monies are fiat currencies. But, the metal is still loved by people. Where does need for gold come in the largest demand sector by far is jewellery, which accounts for around 50 percent of requirement that is gold. Another 40% comes from direct investment in gold, such as that used to create medals, bullion, coins, and bars.

It is different than numismatic coins, collectibles that trade based on demand for the specific type of coin as opposed to its gold content.) Investors in gold include individuals banks, and, more recently, exchange-traded funds which buy gold on behalf of the others. Gold is often regarded as a safe-haven investment.

This is only one reason that when markets are volatile, investors tend to push up the price of gold. Because gold is a great conductor of electricity, the remaining demand for gold comes from business, for use in things such as heat shields dentistry, and technology gadgets. How is the price of gold determined Gold is a commodity that deals based on demand and supply.

Though economic downturns do lead to a temporary reductions in demand from this industry the demand for jewelry is constant. The demand from investors, including central banks, however, tends to track the economy and investor opinion. When investors are worried about the market and based on the rise in demand, push its cost higher.

How much gold is there Gold is actually quite abundant in nature but is difficult to extract. For instance, seawater includes gold -- but in such small quantities it would cost more compared to the gold would be worthwhile to extract. So there's a difference between the access to gold and how much gold there is in the world.

Higher gold prices or advances in extraction methods can shift that number. Gold was discovered in quantities that indicate it might be worth extracting if costs rose near undersea vents. Picture source: Getty Images. How do we get gold.

A miner may actually create gold for a by-product of its mining attempts. Miners start by finding a place where they consider gold is situated it can be efficiently obtained. Then local authorities and agencies need to grant the company permission to build and run a mine.

How does gold hold its worth in a downturn The answer depends partly on how you put money into gold, but a fast look at gold costs relative to stock prices during the bear market of the 2007-2009 recession provides a telling example. Between Nov. 30, 2007, and June 1, 2009, the S&P 500 index dropped 36%.

This is the most recent illustration of a substance and protracted stock downturn, but it is also an especially dramatic one since, at the time, there were very real concerns about the viability of their global financial system. Gold performs relatively well as investors seek out investments that are safe-haven, when capital markets are in chaos.