Gold from an economic perspective

Gold from an economic perspective

Gold's domination of people, societies and states has been reflected in a large number of words and judgment sits in all times, in the heritage of peoples and in a large number of literary works.

People glorified gold, but no one was indifferent to him at all. Even the museums we see are filled with ancient, timeless relics made of gold metal descended to us from ancient civilizations.

The fullness of the vaults in gold is not alone a sign of the progress of a nation, for without a solid economy, abundant raw materials, great production, abundant manpower and scientific capabilities, gold necklaces become blocks. A lifeless and meaningless metal.

So what's the secret to gold? And what is strange in his magic, and why do hearts tremble and the joints tremble and the euphoria increases when touched and seen?

What is the secret in hoarding by the rich and the poor, each as much as it is? Why are men and women fighting to get it and keep it?

What is the secret of this material that has been able to wreak havoc on the world and make man constantly gasp behind it? Have empires fallen or kingdoms expanded because of it?

Gold is bought, combined, decorated, saved, used in cash, known since ancient times, and captured the ideas of people in different places and times.

More than 100,000 tons of gold have been discovered since the beginning of history, of which only 5-7% have been wasted, while oil is running out of oil from some countries.

Samir Abdo says in his book "A Study of the Effects of Gold on the Global Economy": The movement of supply and demand in gold prices affects the world within the following frameworks:

1- The price of gold is usually determined by the cost of its production.

2- The total gold balance is more than the value of the raw material that makes up it.

3- Gold is retained for speculative purposes.

4- The sale of gold is based on the relationship of the current price at the interest rate and the level of prices.

5- The weakness of the existing monetary system has made gold the safest haven for investments.

The benefits of gold are countless, it uses jewel and adornment, uses a future savings method, as well as a solid reserve for emergencies, and is used in the industry, alloys and formulaters, and prepares gold Investment is a key element at all times and places, so the use of gold has multiplied and shapes and methods have varied.

People loved gold, not because it fills hungry bellies, warms the cold Bodies, or pushes the industry, but rather has made it a metal that people have in history. It is attractive in color, bright, strong-cut, incredibly easy, not eroded by the environment, and does not change in color or lose weight

As the demand for gold as a tool for decoration and personal enrichment has increased, research and experiments have shown that there are other benefits to this yellow substance, which have been quickly exploited in various industrial sectors.

Gold has been used in the electrical industries, as well as in the electronic industries.

Therefore, gold will maintain its distinctive characteristics as an ideal reserve and an absolute form of capital liquidity. Hence that unique position in the international monetary area has been gained.

Although money is formally de-styled from gold, almost all governments and central banks still sit on their boxes, and do not seem willing to give up their stacked reserves.

Indeed, as a result of the position of gold among other currencies, a number of the world's pension fund officials are now looking at gold as a beneficiary and profitable to invest in their portfolio of Money.