Starting with a one gram gold bar as a gateway into the gold market, you are by all means making the best financial decision you have ever made. Purchasing this shiny flake could signal a series of decisions that would lead you to an optimal and secure management of your assets and ensure your welfare for the years to come. There is a surprising demand for 1 g. gold bars, obviously meant as symbolic gift, such as this congratulations token marketed by coininvest.com
The first thing that you will learn about gold is that it makes a conventional but solid, low risk, long term investment and at the same time a hedge against inflation, currency depreciation or other economic disruptions ; gold is the only real money. But as soon as you get an answer to your what’s, you will need to start getting answers to your how’s and why’s.
To begin with, the tiny bar helps you realize that even the smallest amount of gold is rare and valuable: with one gram of gold in a 10k alloy, you have the base of a nice ring, and you wouldn’t believe how many expensive rings contain only two or three grams of pure gold. Certainly you will find that out if you ever have the misfortune to try and sell your gold jewelry for cash, but still, selling in the secondary market gives you an idea of how rare gold is.
Tons of mined gold
In fact only a total of 175,000 tons of gold is estimated to have been mined in human history according to GFMS (formerly Gold Fields Minerals Services). The world consumption of new gold produced is about 10% for industrial purposes, while 50% is used in jewelry and 40% in investments. The production of gold peaked in 2003 and has been declining ever since, mainly due to increased mining costs. If it were not for gold jewelry recycling, the market would have an issue with increased demand for physical gold in the last few years.
Gold is the most malleable of all metals and a single gram can be beaten into a sheet of one square meter. For centuries, gold was the standard of every monetary system in the civilized world. Most European countries left the gold standard with the start of World War I and moved to a fractional gold standard, inflating their currencies. Gold standards were widely supplanted by fiat (without intrinsic value) currencies starting in the 1930s.
After World War II, gold was replaced by a system of convertible (exchange rate) currency. All these systems suggested that each country should uphold its own gold reserves to be used as collateral and support the currency. Switzerland was the last country to abide by this rule: it backed 40% of its currency value until the Swiss joined the International Monetary Fund (IMF) in 1999. The confrontation between the US dollar and the Euro, leading to the fluctuation of currency values, prove that no matter how you stretch it, gold is what most of us consider real money_._