Gold has three main uses: first, for international reserves. This is determined by the monetary properties of gold. Historically, gold has successfully served as a measure of value, a means of circulation, a means of storage, a means of payment and a world currency. After gold was decoupled from the US dollar in the 1970s, gold's monetary function has weakened, but it still maintains a certain monetary function. At present, gold is still the fifth internationally accepted international settlement currency after the US dollar, euro, pound, and yen, and is the main body of official financial strategic reserves in many countries.
Secondly, it is used to make jewelry. For a long time, luxurious gold jewelry has been a symbol of social status and wealth. With the development of modern industry and high technology, the range and styles of jewelry and ornaments made of gold continue to expand and deepen. With the continuous increase of wealth and the increasing awareness of value preservation and diversified investment, people's demand for gold is also increasing year by year. Statistics released by the World Gold Council in mid-August this year show that the global demand for the gold and jewelry industry reached US$14.5 billion in the second quarter of 2007, a year-on-year increase of 37%.
Third, it is widely used in industry and high-tech industries. Due to its unique physical and chemical properties, gold is widely used in high-tech fields such as aerospace, aviation, chemical industry, electronics, and medicine, and has broad market prospects.
In addition, the role of gold in ensuring national economic and national defense security and in evading financial risks cannot be replaced by any other item. Although gold is basically no longer used as a means of direct purchase and payment, in the world economy and in real life, gold is still a reserve method with greater store value than any paper currency.