What are the main uses of gold

Tuesday, 3/18/2025 12:32

What is gold most used for...

IT’S OFTEN thought that gold’s value is arbitrary, or that it’s “just” decorative.

But there are good reasons behind the enduring use of gold in the financial system across thousands of years, and its endurance for just as long as a luxury material for jewelry.

Now, increasingly, gold’s properties of durability, malleability and conductivity are seeing the industrial uses of gold increase as new technologies develop; from aerospace to sustainable energy to computing to healthcare. Here are some of the main uses of this surprisingly versatile metal.

Source: BullionVault via World Gold Council, LBMA

Investment and finances

Gold has long been considered a cornerstone – and sometimes the “standard” - in investment and finance, mainly due to its scarcity, resilience and stability. No longer used as a literal currency, gold still provides a store of value and can be used as an investment to hedge against inflation and economic downturns. Investors particularly turn to gold during periods of economic instability, as it tends to preserve value more predictably than other asset classes. When inflation erodes the purchasing power of money, gold often retains its worth.

Central banks play a crucial role in this dynamic, maintaining substantial gold reserves as part of their monetary policy. These reserves serve as a financial cushion and a source of liquidity in times of crisis. The presence of gold in the reserves can enhance trust and confidence in a country's economic stability. For an individual, the possession of vaulted bullion can provide similar confidence. Investment gold held by central banks takes the form of 400oz (12.4kg) bars with a minimum fineness of 99.5%.

Unlike stocks, which can be highly volatile, or bonds, which are susceptible to interest rate fluctuations, gold offers a tangible asset that is not directly tied to the performance of companies or governments. While stocks and bonds can yield higher returns in a bullish market, gold has continued to be a popular option for diversification, risk management, and long-term security and has been the best performing asset so far this century.

Source: BullionVault via World Gold Council, LBMA

Aerospace

Gold is an increasingly valuable resource in the aerospace industry, owing to its unique properties and versatility. One of its primary applications is in the creation of reliable electrical connectors and bonding wires, where the metal’s conductivity and resistance to corrosion ensure that electrical connections remain stable and effective under the harsh conditions of space, where other metals might degrade.

Gold is also used in coating aerospace components to enhance radiation shielding. In the vacuum of space, spacecraft are exposed to intense solar radiation, which can damage sensitive instruments. Gold's reflective properties help mitigate this by bouncing off harmful rays, protecting onboard equipment. The metal is also used in visors in astronauts’ helmets to provide UV protection.

In thermal control systems, gold’s ability to reflect infra-red radiation is crucial in managing the temperature of spacecraft, allowing instruments to operate within their optimal ranges. This is particularly vital for missions involving satellites and space probes, which encounter extreme thermal variations. As more satellites are placed into orbit, the requirement for gold – as an indispensable element in the advancement of space technology - increases.

Electronics

Gold also plays a pivotal role in the production of electronic items. As with many other industrial uses of gold, the metal’s conductivity and reliability is key, allowing the seamless flow of electric current and ensuring efficiency in electronic circuit boards: the power behind the world’s laptops and smartphones.

Gold's resistance to corrosion makes it an ideal choice for manufacturing connectors, switches, and relay contacts. Unlike many other metals, gold does not oxidize, ensuring long-lasting and stable connections. This is essential for devices that require high precision and reliability, such as computers, smartphones, and medical equipment.

Gold is also used in the production of advanced microchips and semiconductors, where thin layers of gold plating are applied to silicon wafers to enhance the performance and longevity of the components.

As gold does not corrode, it can be recycled from old devices to aid sustainability, estimates for the carbon footprint of recycling gold versus newly mined output vary from 1/20th to as low as 1/600th. Researchers have calculated that the cost of retrieving gold from used computer motherboards is 50 times lower than the value of the metal recovered. As technology continues to advance, the demand for gold in this sector is likely to remain strong.

Dentistry and medicine

Gold has been used within dentistry for centuries – the first ever printed book on dentistry, from 1530, provides advice on treating tooth decay, recommending cleaning the cavity and filling it with gold leaf. There is also evidence that gold wire was used to treat teeth in Ancient Egypt. By the early twentieth century, gold was the standard material used for dental fillings, implants and crowns.

Gold’s malleability allows dentists to precisely shape it to fit a patient's teeth. Despite the advent of newer materials, gold remains a preferred choice for many dental restorations due to the reliability and longevity resulting from its resistance to corrosion.

In medicine, gold plays a crucial role in diagnostics and treatment. Gold nanoparticles are employed in various medical applications, including targeted drug delivery and imaging techniques. These nanoparticles can be engineered to bind to specific cells or tissues, allowing for precise treatment of conditions such as cancer. Additionally, gold is used in rheumatoid arthritis treatments, where compounds like sodium aurothiomalate are administered to reduce inflammation and slow disease progression.

Gold also plays a pivotal role in enhancing the performance of biomedical sensors - monitoring physiological conditions, detecting diseases, and guiding medical treatments - due to its excellent conductivity and ability to form stable and reactive surfaces. These properties have led to its use in the booming wearables market, as well as in more specialized medical technology.

Jewelry

Gold has been revered for its beauty and rarity, making it a symbol of wealth and status across cultures and epochs. Ancient Egyptians crafted magnificent gold pieces for pharaohs, while Indian weddings often feature intricate gold jewelry, signifying prosperity and blessings. In Western cultures, gold has been associated with milestones such as weddings and anniversaries. Its appeal seems to transcend national boundaries, making gold a universal emblem of prestige.

The purity of gold, measured in karats, significantly affects its value and wearability. Pure gold is 24 karats, but its softness makes it less practical for everyday jewelry. Consequently, gold is often alloyed with other metals to enhance durability and allow it to take different forms, shades and shapes. Commonly used alloys include 18-karat gold (75% pure) and 14-karat gold (58.5% pure). Higher karats indicate higher purity and value, but lower karats provide greater resilience and affordability.

With growing awareness of environmental and social impacts, ethical sourcing has become crucial in gold jewelry production and other gold metal uses. Responsible practices include fair mining conditions, minimizing ecological footprints, and supporting local communities. Certifications like Fairtrade and the Responsible Jewelry Council ensure that gold is sourced sustainably and ethically, allowing consumers to make informed choices that align with their values.

Recognition

“Gold medal” and “going for gold” are synonymous with success, and gold has long been revered as a symbol of victory and prestige. Its shine, rarity and expense make it a coveted material for recognizing outstanding achievements. In sports, gold medals and trophies are awarded to winners, most famously at the Olympics, where the metal clearly outranks silver and bronze on the winners’ podium.

Beyond sports, gold is widely used in military and civilian honours. Medals and badges crafted from gold are bestowed for acts of bravery, exceptional service, or notable contributions to society. These items serve as tangible reminders of their accomplishments and sacrifices, to be worn with pride and passed down through generations.

Psychologically, gold is associated as a reward with luxury, wealth, power, and excellence beyond the commonplace. The allure of gold as a symbol of achievement continues to inspire and reward those who excel in their endeavours.

Food and drink

Gold has no odour or flavour and is chemically inert. So, why is it increasingly an ingredient in food and drink? Edible gold leaf is used by some chefs to increase the visual appeal and prestige of gourmet dishes. Thin sheets of gold leaf now adorn chocolates, pastries, and even sushi, steaks and cheeseburgers. Gold-infused coffee, tea, and spirits are also increasingly popular, adding a touch of opulence to everyday indulgence – at a price.

As gold is biologically inert and passes through the digestive system without being absorbed, it has no nutritional value, but does add a visually striking element to a dish. Gold-enhanced food and drink can provide a unique visual spectacle and caters to those seeking to indulge in a lavish treat. The use of gold as a marketing tool in high-end culinary experiences underscores its role in enhancing the perceived value and sophistication of products, and as more money is spent on luxury dining, the use of gold as an adornment has increased.

Future uses of gold

Technological advancements could allow for various future uses of gold, not all of them predictable. Gold nanoparticles are at the forefront of medical innovation, and are being explored for their potential in targeted drug delivery systems, where they can transport medication directly to cancer cells. Additionally, gold-enhanced nanotechnology is aiding in the development of advanced diagnostic tools that can detect diseases at an early stage, offering hope for more effective treatments and improved patient outcomes.

Gold is emerging as a valuable component in the push towards sustainable energy, where nanoparticles are being integrated into fuel cells, increasing their efficiency and extending their lifespan. Similarly, gold is being used in the production of solar panels, enhancing electrical conductivity and overall performance.

The metal is also paving the way for breakthroughs in quantum computing. Its conductive properties make it an ideal material for qubits, the fundamental building blocks of quantum computers. Furthermore, gold's unique attributes are being harnessed in various futuristic technologies, including advanced sensors and communication devices.

Gold's future applications could extend far beyond its traditional roles, positioning it as a key material in medical, energy, and technology advancements. Its contributions are set to help shape the future, driving innovation and sustainability across multiple sectors.

Uses of gold FAQs

What is gold used for in jewelry?

Gold has been used in jewelry for thousands of years primarily due to its appearance and natural lustre that doesn’t diminish over time due to gold’s inertness and resistance to tarnishing. Pure gold is relatively soft and easy to craft into delicate and intricate pieces and can also be combined or alloyed with different metals to change its colour and hardness.

What is investment grade gold?

The global wholesale gold investment market, centred in London deals in the London Good Delivery gold bullion bar. This London Good Delivery bar weighs 400 troy ounces - about 12.4 kilograms - and is about eleven inches long. It is stamped on the top (the larger face) with the manufacturer's name, the weight, and the assayed purity. The minimum specified fineness must be 99.5% pure gold, but improvements in the refining process mean that Good Delivery bars now reach 99.99% purity or higher.

Is gold jewelry subject to VAT?

In the UK gold jewelry is subject to Value Added Tax (VAT) at the standard rate of 20%. In the UK gold jewelry is considered a consumer good much like a mobile phone or TV. However, investment grade gold bullion in the form of London Good delivery bars or investment grade coins and small bars can be bought and sold free of VAT.

What percentage of gold is used for investing?

Since 2010 the percentage of gold used for investing has averaged 29%. 2013 saw the lowest investment percentage at 18% and in 2020 during the Covid pandemic the percentage of investment gold peaked at 49%. If you include Central Banks reserves as gold investment of sorts, then between 2022 and 2024 this reached 23% of gold demand.

What percentage of gold is used for technology?

Between 2010 and 2024 the percentage of gold used in technology has averaged 8% with little variation over the past decade. In comparison over the past 15 years gold used in jewelry has accounted for 50% of total gold demand.

Why is gold used as an investment?

Gold is an enduringly popular investment for its ability to retain value over time and serve as a hedge against inflation and economic instability. Analysts say that’s because physical gold doesn’t rely on anyone else’s financial survival or performance, getting you ‘off risk’ for credit, economic and stock-market volatility. Modern data says that gold prices have tended to do best when other assets did poorly, most especially the stock market.

What are the primary industrial uses of gold?

While historically known for coinage, jewelry and investments (including bullion), gold is used in electronics, computing, aerospace, medicine, dentistry, glassmaking, and many other chemical and industrial processes. Gold has retained and even increased its usefulness through the application of gold nanoparticles in innovative technologies, including supporting renewable energy and in modern diagnostics.

What properties of gold make it useful in industrial processes?

Gold has high electrical conductivity, excellent resistance to corrosion, high malleability and ductility, and chemical inertness. These properties make it ideal for usage in electrical components, the aerospace industry and in medical technology. Gold's malleability allows it to be drawn into thin wires and sheets, leading to its use in intricate applications. Gold's catalytic properties also make it valuable in chemical processes within fuel cells and automotive catalysts. Its biocompatibility ensures its safe use in medical devices and implants.

Is gold used in any environmental applications?

Gold is being explored for use in environmental applications such as pollution control and clean energy solutions, due to its catalytic properties. Gold nanoparticles’ large surface area and ability to act as catalysts make them ideal for breaking down harmful substances, leading to use in catalytic converters and water purification systems. In environmental monitoring, sensors utilize the conductive properties of gold to detect changes in the environment, allowing for prompt action to mitigate pollution.

What role will gold play in future technologies?

Gold nanoparticles are being used in cutting-edge medical technology and in sustainable energy innovations. Gold’s properties make it ideal for the manufacture of qubits, the building blocks of quantum computing. Advances in nanotechnology, materials science, and engineering continue to uncover new ways to harness gold's properties, and as the demands for clean energy, pollution control, and environmental monitoring grow, along with advances in wearables and space technology, gold's properties mean that the metal’s role is expected to expand – while maintaining its traditional uses as investment, decoration and store of wealth.

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