I discuss gold a lot here on my blog so I figured it’s only right to dive a bit deeper here and share more about it. In this article, I provide investors and retirees with details on how gold is formed. If you’re going to invest in gold, then it’s definitely important to understand everything about it, including, how it’s formed and more.
Here’s How Gold Is Formed (All You Must Know)
Gold is one of the most sought-after heavy elements in the world, and for a good reason. This chemical element has been used for centuries by different civilizations due to its unique properties, which include its attractive appearance, durability, and high conductivity.
The chemical element gold has 79 protons in each of its atomic nuclei. This means that any atom with 79 protons is a gold atom, and all gold atoms behave chemically similarly. This uniformity in behavior is what makes gold a valuable material for various applications, including jewelry making, coins, and electronics.
The formation of pure gold begins with the fusion of two atomic nuclei, a process known as nuclear fusion, which occurs within stars. When these stars explode, they release a cloud of gas and dust, which eventually forms planets like Earth. As the planet cools and solidifies, so many gold particles and other metals are carried into the Earth’s crust by volcanic activity.
Over time, all the gold deposits are formed through a process called hydrothermal circulation. This occurs when hot, mineral-rich water seeps into cracks in the Earth’s crust and deposits minerals like gold as it cools. These gold deposits are often found in veins and can be extracted through various mining techniques.
Different Kinds of Gold Formed?
Gold is a precious metal that has been valued for thousands of years. It is prized for its rarity, beauty, and versatility. But not all gold is created equal. There are various types of gold; each formed in different ways and with unique characteristics.
Primary Gold
Primary gold is the original gold deposit found in the earth’s crust. It is formed by a process known as hydrothermal activity, which involves hot fluids moving through cracks in rocks and depositing minerals, including gold.
Primary gold deposits typically produce gold in areas of volcanic activity, such as around the Pacific Ring of Fire. These deposits can be mined through underground or open-pit mining methods.
Placer Gold
Placer gold is formed when primary gold is eroded and transported by water. This results in gold deposits in rivers, streams, and on beaches.
Placer gold is typically found in areas where water has flowed, such as in riverbeds and along shorelines. It is often easier to mine than primary gold, as it is closer to the surface and can be extracted using simple tools such as pans and sluice boxes.
Conglomerate Gold
Conglomerate gold is formed when gold is deposited in sedimentary rock formations. This occurs when gold is transported by water and settles in layers with other minerals, forming conglomerates.
Conglomerate gold deposits are found in areas with significant geological activity, such as in the Witwatersrand Basin in South Africa. These deposits are often mined using underground methods.
Refractory Gold
Refractory gold is a type of gold that is difficult to extract due to its chemical composition. This type of gold is often found in sulfide minerals, which require specialized processing methods to extract the gold.
Refractory gold can be found in primary and placer deposits. It is often processed using techniques such as pressure oxidation or bioleaching.
Alluvial Gold
Alluvial gold is formed when gold is transported and deposited by water, but unlike placer gold, it is not found in rivers or streams. Instead, it is found in areas of land that were once covered by water, such as floodplains and deltas.
Alluvial gold deposits are typically found in arid regions, such as the Australian Outback or the Sahara Desert. These deposits are often mined using open-pit mining methods.
Epithermal Gold
Epithermal gold is formed by hydrothermal activity in volcanic regions. This type of gold is typically found in veins and is often associated with other minerals such as silver and copper.
Epithermal gold deposits can be found in areas of volcanic activity, such as the Andes Mountains in South America. These deposits are often mined using underground methods.
Carlin-Type Gold
Carlin-type gold is a type of gold deposit found in sedimentary rock formations. It is characterized by the presence of invisible gold, which is embedded in the rock and difficult to detect.
Carlin-type gold deposits are found in Nevada, the USA, and other areas with similar geological features. These deposits are often mined using open-pit mining methods.
How Does Human Labor Create Gold?
Human labor plays a critical role in creating gold. While gold is ultimately formed through natural processes such as supernova nucleosynthesis and hydrothermal activity, humans are involved in the mining, refining, and processing of gold ore into the valuable metal we know and love.
The process of creating gold through human labor begins with mining. This involves extracting gold ore from the earth’s crust using a variety of methods, including open-pit mining and underground mining. Once the gold ore is extracted, it is transported to a processing facility where it is crushed, ground, and separated from other minerals and metals.
The next step in the process is refining. This involves the removal of impurities from the gold to create a purer form of the metal. Refining can be done through a variety of methods, including chemical processes, electrolysis, and smelting.
Once the gold has been refined, it can be used in a variety of applications. Gold is prized for its beauty and rarity and is often used in jewelry, coins, and other decorative items. It is also used in electronics, aerospace, and medical devices due to its conductivity, durability, and biocompatibility.
The creation of gold through human labor is not without its challenges. Mining and refining gold can be a hazardous and environmentally damaging process. There are also issues related to the exploitation of workers and communities in gold-mining regions, particularly in developing countries.
How Much Gold Exists on Earth’s Surface?
It is estimated that there are around 197,576 tonnes of gold that have been mined throughout human history. However, the amount of gold on the Earth’s surface is difficult to precisely determine. The majority of the world’s gold is located underground, and only a small fraction of it is visible on the surface.
Gold can be found in various forms, including gold nuggets, veins, and grains in sediment. Some of the largest gold deposits in the world are located in South Africa, Russia, and the United States. While gold can also be found in smaller quantities in other regions, the availability of the metal is not evenly distributed around the world.
In addition to the gold that has already been mined, there is likely still a significant amount of gold that remains undiscovered or inaccessible. This is because much of the Earth’s gold is located in areas that are difficult to access, such as deep underground or beneath the ocean floor.
Despite the challenges associated with mining gold, the metal continues to be in high demand due to its rarity and unique properties. As such, efforts are ongoing to discover new gold deposits and develop more efficient and sustainable mining techniques.
Why Is Gold One of the Most Popular Precious Metals?
Gold has been a valuable and sought-after precious metal for centuries. It has played an essential role in human history, serving as a currency, a symbol of wealth and power, and a material for art and decoration. Here are some reasons why gold is one of the most popular precious metals.
Scarcity and Rarity
Gold is relatively rare compared to other elements on Earth, making it a highly valuable and sought-after metal. It is estimated that all the gold ever mined throughout human history could fit into a single cube with sides measuring about 20 meters.
Durability and Resistance
Gold is a highly durable and resistant metal that does not corrode or tarnish over time. This makes it an ideal material for jewelry, a gold medal, and other decorative items that are meant to last a long time. Gold is also resistant to heat and moisture, making it useful in various industrial applications.
Versatility and Usability
Gold is a highly versatile metal with the property to be shaped and formed easily in various forms. It is also an excellent conductor of electricity and is used in many industrial applications, including electronics and medicine. Gold is also used in dentistry for its biocompatibility and durability.
Intrinsic Value
Gold has an intrinsic value that is not dependent on any government or financial institution. This makes it a reliable store of value as well as a hedge to counter inflation. Gold can be easily traded and used as a form of currency, making it a popular investment option.
Cultural Significance
Gold has played a significant role in human culture and history. It has been used in various religious ceremonies and cultural practices for centuries. Gold is also a symbol of wealth, power, and prestige and is often used in jewelry and other decorative items to signify status and social standing.
Popular Gold Items For Investment
Gold has been a popular investment for centuries, prized for its rarity, durability, and timeless beauty. While there are many ways to invest in gold, such as buying physical gold, investing in gold exchange-traded funds (ETFs), or investing in gold mining stocks, one of the most common ways to invest in gold is through buying gold items. Here are some popular gold items for investment:
Gold Bullion Bars
Gold bullion bars are the most common form of physical gold investment. They are available in various sizes, ranging from small 1-gram bars to large 1-kilogram bars. The larger the bar, the lower the premium you will pay over the gold spot price. Gold bars are easily tradable and can be stored securely in a safe or a bank vault.
Gold Bullion Coins
Gold bullion coins are another popular form of physical gold investment. They are issued by government mints and are legal tender in their respective countries. Examples of the top gold bullion coins are the Canadian Gold Maple Leaf, the South African Krugerrand, and the American Gold Eagle. Gold bullion coins are also available in various sizes, and their value is based on the gold content and the prevailing gold spot price.
Gold Jewelry
Gold jewelry is a popular investment in many cultures, and it has been worn as a status symbol and a store of value for thousands of years. The value of gold jewelry is determined by its weight and purity, and it can be easily traded or sold. However, keep in mind that the value of gold jewelry also includes craftsmanship and design, which may not appreciate in value as much as the gold content.
Gold ETFs
Gold ETFs are exchange-traded funds that invest in gold bullion or gold mining stocks. They are a convenient way to invest in gold without having to own it physically. Gold ETFs are traded on stock exchanges, and their value is based on the underlying gold price. One advantage of gold ETFs is that they provide liquidity and diversification, as you can invest in a basket of gold mining stocks or gold bullion from different countries.
Gold Coins for Collectors
Gold coins for collectors are coins that are not only valued for their gold content but also for their rarity, historical significance, or artistic merit. Examples of such coins include the Saint-Gaudens Double Eagle, the British Gold Sovereign, and the Chinese Gold Panda. Collectible gold coins can appreciate in value over time, but their value is subjective and depends on factors such as rarity, condition, and demand from collectors.