You would surely agree that gold has been an investment powerhouse, not just for its beauty and intrinsic value, but for what the precious metal stands for as a symbol of financial security. We have seen recent changes in the prices of gold, which reminds us of its ability to influence the strongest economies in the world. As it influences economies, it is quite interesting to learn about facts about gold.
Gold can play an essential role in times of inflation; its role as an asset for governments as well as individuals assuring financial security in the wake of economic uncertainty is unparalleled.
Let’s take a look at various interesting facts about gold.
Amazing Financial Facts About Gold
1) A Century of Gold (1924-2024): How Gold’s Price Has Soared
Gold has seen anfascinating journey through the past century, which has seen a rollercoaster ride when it comes to its prices through the years. An ounce of gold was priced at a meager $20 in 1924, while as of this month, i.e. November 2024, it is valued at a staggering $2,695 per ounce. This is a massive 13,400% spike which is a testament to the power gold possesses, making it highly desirable.
2) The World Gold Council and Gold
The World Gold Council was founded in 1987 and is based out of London. The WGC organization is an important player in the gold market on a worldwide basis. It works in tandem with the top gold mining companies of the world and influences the impact of gold as an indispensable economic asset. The WGC aims to promote gold’s role as a trusted part of financial markets.
An interesting fact about the World Gold Council is its pivotal role in creating the world’s first gold-backed ETF (Exchange Traded Fund) in 2004. This innovation revolutionized gold investing in a dynamic manner, allowing everyday investors to invest in gold without having to hold the metal physically. Since its inception, this ETF—listed on the New York Stock Exchange as SPDR Gold Shares (GLD)—has blossomed to become one of the largest ETFs globally, holding nearly as much gold as some of the world’s most prominent central banks!
3) LBMA and Gold
The LBMA outlays stringent standards, ensuring that elements like the quality, weight, and purity of the gold bars are of the highest order. It certifies the leading gold refiners on the “Good Delivery” list. The LBMA controls the world’s largest daily trading volumes of physical gold and silver.
A ballpark figure worth $30 billion of gold is estimated to be traded via the LBMA on an everyday basis in London. This sets the city as the central hub for the gold market of the world. The LBMA is so highly regarded that the Central Banks of some countries adhere to their standard when dealing in gold.
4) Highest Gold-Producing Countries
- China – 368.3 tonnes
China is regarded as the largest gold producer across the globe, amassing a whopping 11% of the world’s gold supply. While there has been a decrease in their gold reserves from 383 tonnes to 368.3 tonnes, China still spearheads the production leaderboard for gold. The major cause for this decrease is the stringent environmental regulations that have been implemented in China, which have shut down inefficient mines.
- Russia – 331.1 tonnes
Russia stands in second place when it comes to gold production, with 331.1 tonnes. Having only recently overtaken Australia in 2019 for the second spot, Russia has set itself as the main supplier of gold in Europe. The interesting part is that the Russian government is the largest consumer of gold produced in Russia. Despite the sanctions it faces due to the invasion of Ukraine, Russia’s gold reserves act as a fail-safe for any future economic concerns.
- Australia – 327.8 tonnes
Major mining companies like Cadia Valley and Mount Morgans have been integral in leading Australia’s gold production charge. Gold is one of Australia’s important exports, contributing to around 50% of the total exports out of Australia, with an 8% stake in its GDP.
These facts about gold and its production numbers in various countries show the Neo-Gold Rush prevailing throughout the world.
5) Top Gold Bullion Brands
Various mints and refineries produce gold bullion bars and coins in different weights and designs. Below are the top private and government brands that produce them for investors and collectors.
Private Brands:
- PAMP Suisse: PAMP Suisse is a bullion market leader through the past decade and is renowned for the high-quality gold products they offer. The iconic “Lady Fortuna” design is synonymous with the brand.
- Valcambi Suisse: Valcambi Suisse’s participation in the gold market stretches back to 1960, when they gained a great reputation for quality gold bars. With beautiful craftsmanship at the forefront of all their creations, they cater to a wide variety of customers.
From both brands, the 1 oz gold bar versions are the most popular among investors.
Government Brands:
- United States Mint: The US Mint is known for its phenomenal coins and bars, such as the American Gold Eagle. Their bullion products are not just great investments but rich in American heritage as well. The Mint produces legal tender and numismatic coins.
- Royal Canadian Mint: The popular Canadian Gold Maple Leaf coin is one of the most sought after pieces out of the Royal Canadian Mint. RCM has a long-running history of producing high-quality and secure bullion products
Did You Know: Bullion Mentor
Need to make smart investments in precious metals after learning these amazing facts about Gold? Bullion Mentor helps you with hourly price comparisons across a plethora of gold and silver products. You can compare prices and uncover near-spot price deals—which help you find great bargains and maximize your investments.
It aims to help ease your buying experience by providing you with market insights to choose the best options that align with your portfolio.
6) Biggest Gold Bar (250 kg)
When going through facts about gold, you might ask yourself what could be the largest gold bar in the world, well, we hope the next bit piques your interest.
250 kg (Created as a Record)
Hailing from the land of Japan, Mitsubishi Materials Corporation created the world’s largest gold bar back in 2005. The bar weighed an incredible 250 kg and was made of 99.999% gold. It is kept on display securely at the Toi Gold Museum. Here’s a small chart with its dimensions.
Weight – 250 kg
Length – 45.5 cm
Width – 22.5 cm
Height – 17 cm
7) Who Decides the Price of Gold? How Many Times Does it Change in a Day?
The price of gold is influenced by factors like supply and demand. Given that gold is rare and considered a high-value investment, its price is quite high. Its demand spans from jewelry to industrial uses, while the price is determined by a group of banks and an oversight committee that analyzes the future market of gold and thus establishes the spot price and fixed price. COMEX and LBMA are one of the chief operators of these derivative markets.
The LBMA sets the “London Gold Fix,” which is a standard price utilized worldwide. It is determined twice a day, once at 10,30 a.m. and then at 3.0 p.m. GMT. It began in 1919 and continues to help guide various stakeholders in the gold market.
8) Which is the Most Expensive Gold Coin in the World?
How can we discuss facts about Gold without looking at the most expensive gold coin in the world? The 1933 Saint-Gaudens $20 Gold Double Eagle is considered the world’s most valuable gold coin. It was initially minted in the US; however, it was never circulated. Instead, they were almost instantaneously melted down.
There are only 13 coins of this variety known to exist today, with 10 of them secured at Fort Knox and two in the U.S. National Numismatic Collection. The 13th coin is also known as the “Weitzman Specimen” and was sold for a whopping $18.8 million in 2021 after being owned by Stuart Weitzman since 2002.
9) The US Mint:
In the United States, the US Mint is the leading authority that produce gold bullion. They have several mint facilities spread nationwide. Facilities like West Point and Denver are known for their American Gold Eagle and American Gold Buffalo coins. These coins are famous for their value gauged by collectors and investors.
10) Paper Money vs Gold
Did you know, until 1971, every US dollar was set against a fixed amount of gold? With the Gold Standard, dollars could be exchanged in return for gold, which was used as a tactic to keep inflation in check. However, President Nixon ended this in 1971. This is important as today’s paper money has no intrinsic value but is considered valuable as people have faith in the government. After this shift, gold has taken the spot as the best choice when looking for a safeguard against inflation.
These were some of the most amazing facts about Gold, which goes to show how much more lies beneath its shiny yellow exterior.
Also Read: The Benefits of Diversifying Your Investment Portfolio with Gold
