The demand for gold continues to increase in the technology sector. According to the WGC, or World Gold Council, the yellow metal will play a key role in the development of electrical vehicles, but this is just one of the many applications the precious metal will be needed for.

Gold’s Technological Role Is Often Misunderstood

Historically, gold has primarily been seen as an investment, and in earlier times was used as a form of money. When it comes to industry and technology, it is usually metals like copper, bronze or silver which get all the attention. However, the WGC has recently shown that industrial demand for gold made up over 380 tonnes during the previous decade, which is thirteen percent greater than the net purchases which have been made by central banks.

Electronic machines are becoming faster and more powerful, and as societies phase out gas automobiles in favor of electric ones, gold will become more important. It is an essential component in hospital displays, televisions, cars and smartphones. The reason for this is because gold will not corrode like other metals and has tremendous conductive capabilities, particularly when applied as a connector coating or bonding wire.

Why Gold Is So Valuable

This precious metal is extremely rare. It is the byproduct of cosmic interactions which took place in the distant past. It is pliable, yet soft, which enables manufacturers to stretch it into wires which are narrow or plate into coatings. These physical characteristics make it perfect for multiple electronic applications.

Another factor that indirectly contributes to gold’s rise is the success of emerging economies. In the past, cutting edge technologies were largely restricted to nations in the North Western hemisphere. However, with the growth of the BRICS nations (Brazil, Russia, India, China and South Africa), billions of people now have and want access to the internet, smartphones, computers and other electronics, which has placed tremendous demand on a variety of industrial materials, especially gold. This is why gold use in the technology sector has continued to grow year after year since 2010, and will continue to do so for the foreseeable future.

Cheaper Gold Alternatives

Despite the fact that gold’s physical properties have been known for quite some time, it wasn’t until recently that technology companies started using it heavily. The reason is because in the past they always had access to cheaper alternatives such as copper or silver. However, as electronic devices become more sophisticated, these lower cost alternatives are reaching their limits.

For example, the amount of memory held by electronics continues to grow. As a consequence, the wires which are used in their construction have become thinner, and fewer connections are needed, which makes gold better suited to the task. Gold is also preferred for things such as wire bonding, because electric vehicles have specific safety requirements which matter more than the material cost. These vehicles must meet regulations involving emissions control and driver assistance. Various sensors also require gold, especially those used for fingerprints.