Gold

Gold is a dense, soft, yellow metal. Its chemical symbol is Au and its atomic number is 79.

Disclaimer: this page is general information only. It is not investment advice and it does not recommend any action. It shows no prices or forecasts. Consider speaking to a qualified adviser before any financial decision.

What gold is

Gold is a chemical element that does not rust or tarnish easily. It conducts electricity well and can be shaped into very thin sheets and wires. Because it is rare and lasting, people have valued it for thousands of years.

Main uses

• Jewellery

  Gold is widely used for jewellery, usually mixed with other metals to make it harder.

• Investment

  Gold is owned as bars, coins or through financial products linked to it.

• Central bank reserves

  Many central banks keep gold as part of their reserves.

• Industry

  Because it conducts electricity and resists corrosion, gold is used in electronics and some medical and scientific equipment.

Why people own gold

• A store of value: it has been valued for a very long time and is not tied to one company or government.
• Diversification: its value does not always move in step with shares or bonds, so some people use it to spread risk.
• Tradition and beauty: jewellery and gifts have cultural importance in many places.

Owning gold also has downsides: it pays no interest or dividend, and physical gold needs safe storage.

How gold is measured

• Purity (carats): 24 carat means pure gold. A lower carat number means more of other metals are mixed in.
• Purity (fineness): bars are often described by fineness, the parts of gold per thousand. A bar of 999.9 fineness is almost pure.
• Weight: gold is commonly weighed in troy ounces. One troy ounce is about 31.1 grams.

How gold is traded, in general terms

• Spot market: trading for delivery now or very soon. London is a major centre for trading physical gold.
• Futures and options: contracts for later dates, traded on exchanges.
• Funds and certificates: products that give exposure to gold without owning the metal directly.

Gold is usually quoted in a major currency per troy ounce. This site does not show quotes because a static page cannot provide reliable market data.

Back to what commodities are