The yellow metal reached an all-time high on May 20, 2024, and the latest gold price forecasts indicate that there is more room for gold to rise due to a potential recession and other supportive factors, however, bets on interest rate cuts on it have declined.
The biggest factor in the rise in the price of gold
The biggest factor in the rise in the price of gold is the demand for it, and as we know, when the demand is greater, its price increases, and just as the supply of gold is limited on planet Earth, this limits the supply of gold, which negatively affects the price, as there is only a limited amount of gold available. As we approach the end of gold production, prices are likely to rise due to higher demand.
Gold has a huge impact on our modern world, as we use gold in many different ways. We use them not only as assets but also in machines, computers, electronics, etc. which diversifies their uses.
In the past, gold was only used as jewelry, which limited its demand and prices. Over the past few decades, as technology has advanced, we have begun to use it in many different ways.
Uses of gold in current industries and technology
Using gold as an asset
Nowadays many people like to hold gold as a reserve/asset, and rising prices encourage more potential buyers.
In times of recession, people prefer to hold assets more than liquid cash. So, in this case, gold will be their top preference.
The use of gold in the aviation industry
Gold is used in hundreds of ways in every spacecraft launched by NASA. Gold is used in circuits because it is a reliable conductive metal. In addition, many parts of each spacecraft have a gold-coated polyester coating.
Use of gold in electronics
The most important industrial use of gold is in the electronics industry, where solid-state electronic devices use very low voltages and currents that can be easily interrupted by corrosion or distortion at the contact points.
Gold is a highly efficient conductor that can carry these small currents and remain corrosion-free. Electronic components made of gold are very reliable. Gold is used in connectors, switch and relay contacts, soldered joints, connecting wires, and bus strips.
Use of gold in computers
Gold is used in many places in standard desktop or laptop computers, and the fast and accurate transfer of digital information across the computer and from one component to another requires an efficient and reliable conductor.
Gold meets these requirements better than any other metal, because its high quality and reliable performance justify the high cost.
The terminal connectors used to mount microprocessors and memory chips on the motherboard and the plug and socket connectors used to connect cables all contain gold. The gold in these components is usually electroplated onto other metals and mixed with small amounts of nickel or cobalt to increase durability.
Read also: Tips for investing in gold
In conclusion , gold is too expensive to be used by chance. Instead, it is used intentionally and only when less expensive alternatives cannot be identified. As a result, once a use for gold is discovered, it is rarely abandoned for another metal. This means that the number of uses for gold is increasing over time. the time.
Most of the ways gold is used today have only been developed over the past two or three decades, and this trend is likely to continue. As our society requires more sophisticated and reliable materials, our uses for gold will increase and this combination of increasing demand, lack of substitutes, and limited supply will increase The value and importance of gold has increased steadily over time. It is truly the metal of the future