By Kenkyo Investing
- Gold had its place in history as a store of value, but its place in today’s world no longer makes sense.
- Gold has very little utilitarian value.
- Sell your gold and invest in something that produces something.
Gold (NYSEARCA:GLD), along with other precious metals, has historically been recognized as a sign of wealth - a store of value. Gold is rare, distributable, and durable - holding the traits desired for currency. While it had its place in history as a means of exchange and a store of value, this no longer seems to make sense in today's world where paper currencies are more cost effective and easy to transport while holding the remaining other traits desired for currency.
So where does gold stand in today's world?
There are several practical uses for gold. It is used as a conductor in many electronic devices (like cell phones, laptops, etc) and as fillings/crowns in dentistry. However, the utilitarian demand for gold is limited when compared to the total demand for gold. Here is a chart from the World Gold Council showing annual gold demand in tonnes: