- People valued gold throughout history. Isolated cultures all over the world developed an appreciation for gold independently. Everyone from the ancient Egyptians to the Chinese to Native Americans created works of art out of gold. The pursuit of the precious metal changed cultures and destroyed countless lives. The Americas were colonized, in large part, because of gold exploration. Spanish conquistador Hernan Cortez destroyed the Aztec Empire and his countryman Francisco Pizarro destroyed the Inca Empire because of their lust for gold. News of gold deposits prompted countless migrations. The most famous is the 1849 "gold rush" to San Francisco. Few miners found gold but it swelled the population of California speeding up its recognition as a US state. Until the 20th century, most currencies were based on a "gold standard." Paper money was backed by gold. Most economies were off the gold standard by 1932, but it is still prized and actively traded throughout the world today.
- Gold is an element. On the periodic table it has atomic number 79 and its symbol is Au. Gold is a rare and valuable precious metal. Pure gold is very soft but remains tough even when deformed. It does not splinter or break like other metals. Gold does not rust or corrode and is very resistant to chemicals. It conducts heat and electricity well. These qualities make gold very useful for a wide range of electronic and chemical uses. This includes high tech equipment like computers. Gold does not provoke allergic reactions in most people so it is also prized in jewelry.
- Men killed for gold. Entire civilizations were built and destroyed in the pursuit of gold. The well being of cultures was determined by how much gold they possessed. People were enslaved to mine it. Gold is traded in many forms. Gold dust and gold nuggets were used first. Men later learned to melt it down and cast coins and works of art. Today gold is traded as a commodity with the actual metal never changing hands. The word "gold" refers to both the substance and the unique color it possesses. It is also used to identify excellence or victory as in the expressions "gold standard" and "gold medal." Human beings have valued gold throughout their history, but it has been a direct cause of significant human suffering.
- There are many misconceptions about what makes the price of gold go up and down. It is not strictly controlled by supply and demand. For example, there was a great demand for gold jewelry in 1999 and 2000, yet gold prices were extremely low. Gold prices are influenced by a complex combination of factors more closely linked to currency markets than the stock market. In essence, gold is like money and has a direct relationship with world confidence in the dollar. When confidence in the dollar is down the price of gold tends to go up. Many people still believe that currency is backed by gold. This is not true. Currency is only backed with a promise by the government that prints it. At one time you could exchange currency for gold but that is no longer the case. There is also a misconception about what "pure gold" is. Most people do not own pure gold. It is extremely soft and you could bend it with your hands. It is also incredibly difficult and expensive to purify to that degree. Most gold held by people is an alloy with silver or another metal. 18K gold is only 75% gold. 14K gold is less than 60% gold.
- Virtually every human being is affected by gold in some way. Economies are influenced by gold. History was changed by gold. Computers depend on gold to function. Gold is traded in financial markets all over the world. The price changes daily and is often looked to as an indicator of economic health. Gold has strong symbolism. It can represent success and power or foolishness and greed. Our literature and popular culture is littered with gold references, from the golden calf in the Book of Exodus to the James Bond movie Goldfinger.
