It is estimated that around 10-15% of gold is used for industrial purposes. This usage increases the pressure for bullion which in turn creates more demand. Demand is the driving force behind prices, so industrial demand can actually be responsible for higher spot prices and increased volatility on the market. There are various reasons that gold is required for manufacturing and other industrial uses.
Many think of gold as a luxury item, but its chemical composition actually makes it an ideal choice for many other uses besides jewelry. Many items will contain small amounts of the metal to meet a specific purpose. Most electronics contain some amount of gold and the aviation and aerospace sectors are responsible for using a considerable amount each year for a variety of purposes. Even the satellites orbiting our planet contain the metal as it reflects radio waves and electromagnetic radiation.
Silver is the metal that is known for making the photography process possible, but gold is actually used quite often in this field as well. Many toners contain different amounts of gold which in order to vary the color in certain photographs. The automotive industry is also responsible for using a significant amount of this ore. Some manufacturers use it because it provides excellent heat resistance, better than that of other metals. It is used in some engines and other parts where heat could cause an issue.
The military uses gold in its vehicles and jets and it is used by commercial planes and spacecraft as well. Aircraft use the metal in tiny threads that line the windows. Since the metal prevents the formation of ice, the lining in the windows allows for clear visibility and safe flying. Gold is even used in the protective suits that astronauts were in space!
Right now this precious metal has a high level of demand from all sectors, especially the jewelry and investment areas. These are in direct competition with the industrial applications that require this mineral. A combination of all of them shows why it has reached almost record prices in the last few years, and this is not expected to change any time soon. In fact new uses for the bullion in industries may cause the cost to go higher that it is today.
Many think of gold as a luxury item, but its chemical composition actually makes it an ideal choice for many other uses besides jewelry. Many items will contain small amounts of the metal to meet a specific purpose. Most electronics contain some amount of gold and the aviation and aerospace sectors are responsible for using a considerable amount each year for a variety of purposes. Even the satellites orbiting our planet contain the metal as it reflects radio waves and electromagnetic radiation.
Silver is the metal that is known for making the photography process possible, but gold is actually used quite often in this field as well. Many toners contain different amounts of gold which in order to vary the color in certain photographs. The automotive industry is also responsible for using a significant amount of this ore. Some manufacturers use it because it provides excellent heat resistance, better than that of other metals. It is used in some engines and other parts where heat could cause an issue.
The military uses gold in its vehicles and jets and it is used by commercial planes and spacecraft as well. Aircraft use the metal in tiny threads that line the windows. Since the metal prevents the formation of ice, the lining in the windows allows for clear visibility and safe flying. Gold is even used in the protective suits that astronauts were in space!
Right now this precious metal has a high level of demand from all sectors, especially the jewelry and investment areas. These are in direct competition with the industrial applications that require this mineral. A combination of all of them shows why it has reached almost record prices in the last few years, and this is not expected to change any time soon. In fact new uses for the bullion in industries may cause the cost to go higher that it is today.
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