Gold is more than just an asset. You cannot eat it , you cant make lawn mowers out of it ...Yes - gold is more than just an asset - and has a MULTITUDE of uses including a *starring* role in Electronics!Silver is not so reliable because the industrial uses are far greater
Gold possesses a unique combination of properties that have resulted in its use in a wide range of industrial applications.And this is just the Electronics Industry's use ...These applications in total account for a current consumption of approximately 450 tonnes of gold per annum. The particular properties of gold which make it suitable for use in electronic and electrical applications include its good electrical conductivity, its ability to be cost effectively fabricated into the desired form (high ductility) and excellent corrosion resistance (meaning it does not form tarnish layers even when operating at high temperatures.). Gold's high thermal conductivity ensures rapid dissipation of heat when used for electrical contacts. A number of gold products are manufactured for use in the electronic industry:
- Plating salts
- Wrought gold
- Evaporation wire for semi conductors
- Sputtering targets
- Bonding wires
- Solders and brazing alloys
- Thick film pastes
MORE at: www.gold.org/value/sci_indu/indust_app/electronic_apps.html
Production was 2600 metric tons in 2000.
The actual quantity of gold used in industry is actually quite small relative the amount in existence and does not affect noticeably the price of gold. It does affect it and may be more noticeable in the future if a superior-cheaper substitute is found for it that has the effect of ending suddenly those uses of gold. But, like the Spanish American gold 350 yeass ago the effect will be once and complete, it will not come as repeated fluctuation. Silver fluctuates much more than gold because the rate of addition to the world stock has been more erratic throughout history than gold.