Story of Gold

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A story of Gold

S.N. Ray
Jan 30, 2013

About 4000 B.C., a culture, centered in what is today Eastern Europe, begins to use gold to fashion decorative objects. The gold was probably mined in the Transylvanian Alps or the Mount Pangaion area in Thrace.  Since then one way or other gold and wealth have been connected very tightly.

The top 10 gold reserves are held by Unites States of America, Federal Republic of Germany, International Monetary Fund, Italian Republic, French Republic, Russian Federation, Swiss Confederation, Peoples Republic of China, Swiss Confederation, and Kingdom of Netherlands.

In India gold jewelry is 5-7% of the Indian gold reserve. India is the largest market for gold jewelry in the world.  Over fifty percent of gold jewelry is bought for weddings.  During astrologically selected wedding season gold jewelry rate goes up all over the world.  The wedding anniversary has now become the most aspirational occasion for receiving gold today, extending a couple’s relationship with gold beyond the marriage ceremony.

A recent event in Germany (2013) can be taken as an example of the importance of gold in the world. Germany’s gold reserves were scattered around the globe (in vaults in the US, Britain, and France) after World War II to prevent them from falling into the hands of the Soviet Union. No one has actually seen the gold bars for a long time which has prompted German federal auditors to call for a look.  German policymakers questioned whether they could believe the New York Federal Reserve’s promises that it had 122,597 bars of high-quality German bullion in its basement.  The current economic crisis and criticism that the central bank was not keeping careful enough watch over its gold bars abroad triggered the idea of bringing home $34.7 billion worth of shiny ingots.  Decision has been taken that some or all the gold held abroad will come home. But working out the logistics is difficult.  The logistics of shipping 674 metric tons of gold are extraordinarily complex.  Can those be secured? German central bank declined to comment about how the bullion would be moved but there was a previous shipment of gold from New York to Frankfurt via cargo plane.

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