Will Gold Ever Lose Its Luster? Know From Gemologist

Gold has been synonymous with wealth and power since the conception of civilization. The ancient Egyptians considered it to be the “flesh of the Gods” and decorated their tombs with accents of Gold. In the Indus Valley Cilvilization, Gold was used in jewellery and as a status symbol. The Greeks and Romans used the metal in coins as currency, in art, and for adornment. 

Rhea Poddar Loyalka, Gemologist shares in details if Gold will ever lose its luster.

The tangible luster of the metal may be the reason why the first discoverers of gold were attracted to the yellow metal. Add the anti-corrosive and durable properties to the beauty of Gold and it becomes an obvious choice as a medium of exchange and store of value. If the ancient civilizations were drawn to gold because of its physical properties, today’s society lauds the intangible “luster” of gold. In modern times, this glistening metal found in the veins of the Earth is a guardian for economies and individuals globally. Gold is known to hold its value through economic turmoil and high inflation periods and is therefore an indisputable protector in the financial landscape today. 

With the advent of Gold ETFs (Exchange Traded Funds), today’s financial planner can invest in gold while maintaining the flexibility of stock market trading and avoiding the need to store the physical asset.  However, some researchers have noticed that in the recent past – since the onset of the Russia – Ukraine War – many central banks have started buying physical Gold in order to diversify their portfolios and invest in the only asset that is independent of the forces of any external global network. Reserves of Gold cannot be frozen by any foreign organization in the case of economic or political unrest.

In a classic top-down move, retail investors have also jumped on the wagon of buying physical gold. There is a need to feel financially secure in today’s economic landscape and physical Gold seems to be the top choice. 

In India, the obsession of gold dates back to the earliest kingdoms that ruled the subcontinent. It is weaved into every Indian’s culture and traditions. No wedding or celebration is complete without a gift of gold; whether it is a mother passing on a special necklace set in gold to her daughter, or a father gifting his son a gold coin when he buys his first car, Gold is a constant in the Indian household. 

A large reason for this fascination with Gold is that it is a unique investment that you can wear and use. Today, with an increase in diversification of one’s portfolios into a variety of financial products, Gold retains its place as an asset class that can be enjoyed in the form of jewellery and adornments. 

The World Gold Council’s announcement that Indian women collectively own 24,000 tons of gold i.e. 11% of the world’s gold reserves in the form of jewellery, is proof enough that the veneration of Gold in the Indian subcontinent is here to stay. The newer generations want to enjoy their investments rather than stare at the value of their portfolios going up and down on the screen and wearing and investing in Gold jewellery makes that possible.