Gold has long been associated with wealth and royalty. While people have treasured this metal for centuries for its beauty and history, its value today is connected to the complex interactions in the market.
In this article, we’ll discover the importance of gold, why gold is expensive, its actual cost, and various factors influencing its pricing. We’ll also provide insights into why gold holds a special place in the global economic landscape.
What is Gold, and Why is It Important?
Gold is a type of metal that is often made into jewelry. There are various types of gold jewelry to choose from, like solid gold jewelry, gold accessories, and gold-plated jewelry, which all have unique characteristics.
Gold has been used worldwide throughout the centuries. So, why is gold jewelry popular in the Philippines?
Cultural Significance
Gold has long been known as a symbol of social status and wealth in Philippine culture, even during the pre-colonial era when royalty and elites have worn golden jewelry. Today, gold artifacts serve as historical treasures and a source of pride for Filipinos, reminding them of their ancient skill and artistry.
Financial Security
Gold is often seen as a safety net against inflation and economic uncertainties. People turn to gold jewelry to safeguard their wealth during market volatility. Gold’s stability in value provides a sense of financial security, making it a desirable asset when economic landscapes become unpredictable.
Stability in Value
Lastly, gold jewelry tends to maintain its value over time. Unlike currencies, which can fluctuate, gold has a history of preserving wealth and holding its value. This stability in value makes gold an attractive option for those seeking long-term investments, as it offers a reliable store of wealth that withstands uncertainties in the market.
Why is Gold So Rare and Expensive?
Although many gold jewelry options exist, gold is still considered rare and expensive. It’s because gold is durable, allowing it to be formed into various shapes, and authentic gold doesn’t rust like other types of metal, ensuring its lasting value.
Gold’s status as a safe-haven asset during economic uncertainty also contributes to its rarity and high value. Since it’s recognized as a reliable investment, gold experiences increased demand, further driving up its price in the market.
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How Much Does Gold Cost?
The cost of a gold item varies based on its type. For example, the price of 24K gold can fluctuate in the current market, averaging around $65.43 per gram.
Generally, predicting the cost of gold is challenging due to daily market changes. So, a gold jewelry appraisal is ideal for evaluating jewelry pieces, as this process looks at various factors that determine their overall value and worth.
Related: Gold Testing 101: How to Know if Gold is Real
What is the Main Use of Gold?
Gold is a versatile metal valued by civilizations for millennia, not just for its beauty but also for its unique properties, such as resistance to corrosion, electrical conductivity, and malleability. Here are the top five uses of gold:
Jewelry
Gold has been used in jewelry making for thousands of years due to its lustrous finish and resistance to tarnishing. It is often alloyed with other metals to enhance its strength and create various color variations, such as white and rose gold.
Investments
Gold is a popular investment vehicle. Many people buy gold as a way to hedge against inflation, currency devaluation, and economic uncertainty. It can be invested in through physical gold (bars, coins), gold ETFs, gold mutual funds, and other financial instruments.
Electronics
Due to its resistance to corrosion and excellent electrical conductivity, gold is used in a wide range of electronic devices. It is found in connectors, switches and relay contacts, soldered joints, connecting wires, and connection strips. Gold’s reliability as a conductor makes it invaluable in critical electronic applications where failure is not an option, such as in life-support devices or aerospace vehicles.
Dentistry
Gold’s biocompatibility, non-toxicity, and resistance to bacteria and corrosion have made it a valuable material in dentistry for fillings, crowns, bridges, and orthodontic appliances. Its malleability allows for precise fittings and minimal tooth removal.
Aerospace
In aerospace, gold is used in satellite components, space suits, and spacecraft because of its ability to reflect infrared radiation and its superior conductive properties. It plays a critical role in protecting against radiation and the extreme temperatures of space.
These uses highlight the importance of gold in various sectors, ranging from fashion and finance to high-tech electronics and aerospace engineering.
Factors Influencing the Cost of Gold
It’s crucial to understand several factors that affect the cost of gold in the current market. These factors include weight, gold content measured in karats, and the overall quality of the gold item.
Weight
Weight plays a role in determining the cost of gold. Prices are commonly given per gram, so as the weight of a gold item increases, the total cost increases. It’s crucial in gold transactions, where slight weight changes can strongly affect the final price.
Gold Content
The amount of gold in an item, known as its gold content, also affects cost. Gold purity is usually measured in karats, with 24K being the purest. Higher karats mean more gold in the item, making it more valuable. Understanding the karat value is essential in determining the overall worth of a gold piece.
Overall Quality
Lastly, the quality of a gold item affects its market value. The quality includes how well it’s made, its design, and if it has any impurities or defects. Items with excellent quality, showing great craftsmanship and purity, usually cost more because of the attention to detail and high standards in their creation.
Learn More: Is Gold Jewelry a Good Investment?: What You Need to Know
Discover Your Gold Piece’s Value by Consulting Willyn Villarica Jewelry
Beyond being a symbol of wealth and beauty, gold plays a prominent role in the economy. Remember that gold reflects history and tradition and remains a powerful part of today’s market. So, if you have gold pieces, you must understand their actual value in the market.
Willyn Villarica is your trusted partner for gold appraisal services. Ms. Willyn Villarica, our in-house expert, is a licensed appraiser and certified gemologist in the Philippines. She is the only National Association of Jewelry Appraisers member from the Philippines.
Catering to clients around the globe, our expertise and commitment to excellence ensure that you receive personalized guidance and expert advice tailored to your specific needs and preferences. It’s important to note that while we offer our services worldwide, clients are responsible for covering all travel expenses. Don’t miss out on the opportunity to learn about gold with Willyn Villarica.
Send your inquiries or book an appointment now. Drop us a line at admin@willynvillaricajewelry.com for inquiries or to book your appointments. You can also find us on Facebook (Willyn Villarica Jewelry) and Instagram (@willynvillarica_jewelry). If you need more help, just dial +63279497547.
