The Many Uses of Gold

Gold’s many qualities make it one of the most coveted metals in the world. Not only can it be beautifully shaped and sculpted, the yellow metal also conducts electricity, doesn’t tarnish and is biocompatible (meaning it’s not harmful to our tissue). These qualities make it the metal of choice in a wide variety of industries, including dentistry and medicine, electrical engineering, construction and aerospace manufacturing.

Another important use of gold is to help stabilize monetary systems. For centuries, most advanced nations were on the gold standard, which restricted governments from creating a limitless amount of money and running up massive levels of debt.

Many incidents throughout history show the negative consequences when a country eliminated the gold standard and adopted a fiat currency system.

The most notable example involves John Law, a Scottish gambler who became head of France’s central bank in the early 18th century. In an attempt to reduce the late King Louis XIV’s debt, Law began printing banknotes, flooding the economy with easy money.