Chemical Mergers and Acquisitions

16/09/2011 13:40

 

As a complex foundation, here's exactly what the average human being ought to know when it comes to gold - the element: gold is a chemical element with the symbol Au (that comes from the Latin: aurum "gold"). It's been a reputable and well sought-after precious metal for coinage, jewelry, and various other arts as early as the beginning of documented history. As a native metal it occurs as nuggets or grains in rocks, in veins or vein structures and in alluvial deposits. Much less frequently, it occurs in minerals as gold compounds, generally with tellurium. As metals go, gold is incredibly dense, soft, shiny and the most malleable and ductile 100 % pure metal known to man. For more about this, you may take a look at Chemical Mergers and Acquisitions. Genuine gold features a vivid yellow color and shine traditionally viewed as beautiful, which it maintains without oxidizing in air or water. 
 
Most apparent to the majority of folks, gold is undoubtedly one of the metals that has presented as a symbolic representation of abundance and a store of significance throughout history. In addition, it has been linked to a number of symbolisms and ideologies. 
 
The calendar year 2008 was an easy year to consider, since it designated a significant economic change across the globe. In September of that year the global markets were on a road to what quite a few analysts believed to be the brink of a meltdown. Not too coincidentally, before the September crash, the price of gold was still improving achieving a nominal high of US$1,004.38. 
      
 
Gold has long been a valuable investment. It has been used throughout history as money by the Europeans in the later part of the nineteenth century, and also by the United States until 1971. As the U.S. system has at this point transitioned away from being backed by gold to a fiat currency (money which has worth primarily as a result of government regulation or law), gold has assumed the role of the protector. Whenever money is printed during times of economic uncertainty, the general value of money is devalued as it floods the system. The reason gold is consequently valuable in these situations is that is signifies tangible asset, thus making it a hedge against inflation, deflation, or currency devaluation. 
 
What makes gold incomparable to other commodities will be the role that speculation plays in its market value. Unlike other commodities, the annual production is incredibly low compared to the available quantity which is stored above ground. According to the World Gold Council, of the 2,500 tons of gold mined during the last few years, about 2,000 tons goes into jewelry / dental production, and the rest goes to retail investor and exchange traded gold funds. Even with this reduced production, the cost of gold rose 30 % just over 2010, a great example of how shifts in public sentiment influence the price much more than annual production. 
 
For those of us who aren't seasoned economists and market analysts, you can easily look at the trend of gold within the market to gain an overall perception about how individuals are feeling about the future in economic terms. In general, we have seen that when gold rises in value, there is a feeling of unease. Conversely, as gold trends downward, many times, it coincides with a perceived return to stability in the marketplace. For more detailed information, visit  Chemical Mergers and Acquisitions.