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Gold: The Most Universal Wealth Storage System

Updated on December 26, 2009

Since gold mining is essentially an industry of foundation which in many cases is responsible for the triggering of development for transportation by road and rail as well as water aqueducts and electricity supplies, it is interesting to note that one of the primary characteristics of the gold mining industry is of special interest and relevance in many African countries. It is there that the most significant hindrances to the development of the economies of these entire countries and their long-suffering citizens has been the insufficient existing infrastructure and the inability of these governments of these nations to attract sufficient outside investment in order to make these critical and badly needed infrastructure developments and improvements.

Throughout human history, gold has usually been considered as a synonym to rich individuals and the trappings of aristocracy. However it is important to realize that a great many number of poverty stricken people throughout the world can have relevance to the utilization of gold bars, gold coins and jewellery which is essentially highly refined gold. These products are very widely used as a means of defence against the oscillations of their country's economic situation and as mode of basic savings.

Indeed, in many parts of the world, currency is not considered a reasonable subject of investment for long term savings and the citizens of these nations rely exclusively on gold. There are many people throughout the world who are technically living under the poverty level, however they do possess some measure of gold. It may only be a few grams but nonetheless they do treasure and value that gold as not only their family heirloom but also as a leading vector for savings. Although it is not the conventional way to think about this, consider that many of the world's truly poor families do possess gold in some form or another: It may be in some form of tiny family treasure handed down over generations or it may represent a wedding or other vow, but the gold and therefore value content is indisputable.

Gold is generally considered as one of the finest possible ways to protect an individual or family against both economic and political upheavals in a significant number of developing countries including a large portion of the Indian sub-continent as well as a greater part of Asia and the Middle East. For people throughout these developing countries gold remains one of the most significant important forms of value exchange as it is completely liquid and it is accepted virtually by everyone in the business realm of those countries.

Approximately 70% of all the jewellery which is bought in Asia and in the Middle East is generally salted away as a form of savings, so it is not only used as a jewellery and adornment for garments, but also as a way to safely store wealth. Utilization of the gold and jewellery as a form of savings is especially important in the more backwards and rural regions of these developing countries where there is no access to any appropriate or dependable system of banking: Banks are usually located in the centers of the cities which may be hundreds if not thousands of miles away and thus effectively unreachable by the average rural citizen.

Continued In Gold: Historical Hedge Against Crises & Inflation

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