13 Things About Trading Gold You May Not Have Known

In the face of extreme economic uncertainty, gold has come back to the fore in recent months. Here we bring you an overview of 13 little-known, often spectacular, facts about the precious metal.

1. 777,000 USD is the price of the most expensive gold coin in the world

The largest gold coin on the planet is the one-ton Australian Kangaroo, with a legal tender of 1,000,000 Australian dollars (640,000 euros). However, the metal in the coin alone is worth 36 million euros at the current price per ounce. Its dimensions are 80 centimetres in diameter and 12 centimetres thick.

2. China, the leading gold consumer

While India was historically the main gold-consuming country, it was recently dethroned by China. The Middle Kingdom was the largest market for gold jewellery in 2015, with 784 tonnes, compared to 654 tonnes for India (and just 120 tonnes for the United States), reports the World Gold Council.

3. Jewellery, far from being the only market

While one might think that gold is primarily intended for jewellery, in 2015, this market accounted for only 57% of global demand, according to the World Gold Council. Indeed, the weight of the demand for investment gold (coins and bars, 21%) is significant, given the uncertainties that savers are facing. The precious metal is also widely used in technology (industry accounts for 8% of demand).

4. 700,000 euros, record gold purchase transaction with a smartphone

Bullionvault reports that in August 2015, one of its customers bought 21.39 kilos of the yellow metal for $ 780,000 (700,000 euros at the current price) through an Android app.

5. You can trade gold on Forex

There is no need to possess the gold in its physical form. Instead, for trading gold on foreign exchange market just by opening an account on an online Forex broker platform.

6. You carry gold in your smartphone

A smartphone like the iPhone 6 contains 30 milligrams of the yellow metal or one-thousandth of a gold ounce. Your mobile may therefore contain $ 1.25 (1.12 euros) of gold.

7. 6.8 million euros, the record price ever at auction for a gold coin

The American Double Eagle gold coin from 1933 was auctioned at Sotheby’s in 2002 for $ 7.6 million. The 1933 Double Eagles are unique in that they were never put into circulation as the United States government decided that they should be melted down.

8. The gold was the basis of the world monetary system until 1971

The Bretton Woods agreements in 1944 established a fixed exchange rate regime between currencies and the yellow metal. So for 27 years, according to the “Gold Exchange Standard”, an ounce of gold was worth $ 35. In 1971, US President Nixon put an end to the system, marking the beginning of a surge in the ounce of gold. In 45 years, it has multiplied by 36, to nearly $ 1,250!

9. A winning investment

While it is still a little early to say that gold will be the investment of the century, its performances since early 2000 (+ 345%) are enviable, to say the least.

10. Indian women possess 11 per cent of all gold in the world

Adoration of gold is etched in Indian tradition. Therefore, Indian women possess 11 per cent of all gold in the world in the form of jewellery.

11. The Largest Gold Owners Are Banks

Here are the top countries whose central banks have the largest gold reserves in the world: United States – 8,133.5 tons, Germany – 3,363.6 tonnes, Italy – 2,451.8 tonnes, France – 2,436 tonnes

12. Gold is becoming increasingly scarce today

Finding a 5-carat diamond is more common than finding a 30-gram gold nugget. It does not prevent the interest in the extraction of this metal. The Witwatersrand mines in South Africa provide around 50% of all gold mined globally.

13. A bank is no longer the best option for storing your gold

The bank is no longer the best choice for storing your gold. In case of bankruptcy of this institution, you may have difficulty in recovering the gold stored in its safe.