Humans have been using gold as a form of currency or exchange dating back to the earliest civilizations. Our fascination with the beauty and versatility of gold has spanned thousands of years and still has great value today. The earliest record we have of human use of gold dates backs to 5000 B.C. when it was used as a fashion accessory in Eastern Europe. Valued because of its unique color and shine but versatile because of its malleable physical features, these societies moulded it into jewellery and attached it to clothing. They most likely discovered the gold in the Transylvanian Alps.
The next notable appearance of gold in human history is in the Middle East in 3000 B.C. A civilization in modern day Iraq used gold to create intricate jewellery designs that are still popular today. However, the Egyptian cultures have the most extensive history of the use of gold, having begun burying it with Pharaohs for their wealth in the afterlife as far back as records of them go. They used gold to create statues, to coat armour, and as currency. It was the expansive Egyptian culture’s use of gold currency that spurred the worldwide adoption of gold as the standard of international trade. Afterwards, gold’s popularity across the globe exploded. But the Egyptians continued to be considered the masters of gold craftsmanship for many years after.
The Great Gold Rush Has Begun… again?
The first great gold rush began in 1971… gold prices ran from $35 to over $700, a twentyfold rise! A decade later, prices settled near $300, nearly a tenfold increase!
The second great gold rush, phase one began in 2001…. gold prices climbed from $275 to over $675 – (25% growth/year!) That’s not bad, but this is still just the warm up phase!
The third great gold rush, phase two began in 2007… gold prices climbed above $750 that year!
The fourth great gold rush, phase 4 is happening now… from 2008 to late 2013 the price of gold has increased to approximately $1250/ounce!
Good news! You’re not too late.
Gold and gold shares are tied to the US dollar. When the dollar goes down in value, investors seek safety for their money and buy gold. Also with global turmoil in the world affairs gold also shines. These conditions influence the price of gold and in most cases has influence on the price of gold stocks.
Secondly, countries like China and India are growing quickly. These countries are seeing unprecedented growth. China alone has over 1 billion people and a hungry appetite for base metals such as copper, zinc, nickel, and iron. This increasing demand serve well for gold stocks and gold mining companies.