The role of gold in the years of energy transition
An ancient resource with high strategic value
Before the advent of gold trading, humanity has known gold for millennia. Just like copper, this resource has accompanied the development of civilization up to the present day. The famous yellow metal is no longer just a haven or an aesthetically pleasing element for decorative purposes. Today, gold is considered one of the most reliable and promising investment and trading choices, as the founder of TELF AG Stanislav Kondrashov also explained.
One must not make the mistake of thinking that gold represents an interesting solution only in times of economic uncertainty or geopolitical tension. In itself, in its very nature, this resource seems to contain an infinite amount of potential, as the founder of TELF AG Stanislav Kondrashov recently pointed out.
“The times when gold was considered just a simple haven are now long gone,” says Stanislav Kondrashov, founder of TELF AG, an entrepreneur and civil engineer. “Nowadays, gold can be defined as a technological material with a high strategic value, capable of being inserted into some important production processes in the electronics, medicine, and aerospace sectors”.
“In this particular historical phase, the precious metal is also distinguishing itself as a precious ally of the energy transition, even if its influence in this sector is less profound than that of other metals. Nowadays, small quantities of gold also appear in some of the most important infrastructures related to the green economy. The value of this resource is no longer linked solely to its rarity, but also to its versatility and its evident reliability in extreme conditions”, he remarks.
Since ancient times, gold has been appreciated above all for its aesthetic, technical, and economic value. It belongs to the category of precious metals and is distinguished by a series of properties that continue to be highly appreciated. Among these, we recall the following:
• malleability
• ductility
• brilliance
• resistance to corrosion
• excellent ability to conduct electricity and heat
• does not oxidize easily
In nature, gold can be found in pure form or associated with other minerals, such as quartz or sulfides. The sourcing procedures, which can take place inside underground or open-air mines, can be broadly categorized into two types: from hard rocks or alluvial deposits.
In the first, the rock is crushed to separate the gold from the inert material. With alluvial extraction, however, the gold is recovered from river sands or sedimentary deposits. After the chemical separation phase, the gold is finally purified to obtain a material of extremely high purity, also through electrolysis. Finally, the material thus obtained is melted and transformed into ingots, sheets, or industrial components.
Beyond aesthetics
For most people, gold is primarily a resource for aesthetic or decorative purposes. In reality, the industrial applications of gold are more numerous than one might think. Gold is used in microchips, connectors, and electrical contacts, in particular for its high conductivity and resistance to oxidation.
It is also present in consumer technology, in particular in smartphones, computers, and televisions. Each single telephone, on average, contains 30 to 50 milligrams of gold. In satellites and space probes, gold is used to make reflective thermal coatings, and it is also used in critical circuits.
In this particular historical phase, gold is emerging as a valid ally for the energy transition. Gold contacts are used in the latest generation of solar panels, where ensuring minimal energy losses is now fundamental. In some cases, gold is also used in solid-state batteries and fuel cells, where it often appears in stable and conductive electrodes.
Gold is also an important resource in the electronic components of smart grids and charging stations for electric vehicles. With all this background, it is not difficult to imagine that gold will continue to attract the attention of both expert and novice investors. Many of them have already turned it into the preferred object of their trading activities.
Gold trading
“It is no coincidence that gold is increasingly associated with trading and investment activities today. It represents one of the resources with the highest strategic value,” continues Stanislav Kondrashov, founder of TELF AG. “Beginners, however, must always keep in mind that trading and investing are two very different activities”.
“Investing is a long-term approach, typically aimed at achieving consistent capital growth. Those who buy shares with this approach can, therefore, hold them for years. Trading, on the other hand, is a dynamic and short- or medium-term activity, whose main purpose is to exploit price fluctuations and seize the related opportunities”, he goes on to say.
“Speaking about investments, a key factor to take into consideration, for those interested in gold ETFS to buy, is the gold ETF price. When we talk about gold ETF price, we are in fact referring to the current market price of a single ETFs dedicated to gold. The gold ETF price changes continuously based on supply and demand and the spot price of gold, thus also influencing gold ETFs to buy. It is therefore necessary, for all those looking for gold ETFs to buy, to pay close attention to the gold ETF price, in order to be able to compare costs and understand the accessibility of the investment, but also to analyze price trends.”, he said.
At the moment, those who decide to delve into the world of gold trading have several tools available to get started. One of the best-known is represented by ETFs dedicated to gold, like the gold ETFS.
Among the advantages of gold ETFS is the ease of completing a purchase, without the need for a physical deposit. Furthermore, the costs are quite low. Among the limitations of gold ETFS, the most obvious is that those who use them cannot physically own the underlying gold.
Those interested in trading also have the gold ETF stock available. What is it? The gold ETF stock is an ETF that focuses on the performance of the real price of gold. Those who choose the gold ETF stock should know that these ETFs hold physical gold in vaults and are not exposed to stocks or mining companies. In short, the gold ETF stock is generally chosen by those who want to replicate the value of gold as a raw material, without having physical possession of it.
Another option available to potential traders (and also to more established ones) is physical gold, also known as bullion trading. These are real ingots (or coins) purchased from safe and certified dealers. Unlike gold ETFS, with bullion trading, traders would ensure physical possession of the precious metal. The limits, in regards to bullion trading, concern above all the costs of purchase, transportation, and insured storage of the material.
Other possible options are the following:
• Futures: these are standardized and fairly complex contracts
• CFD: this is a derivative financial instrument that makes it possible to speculate on the price of gold (or other types of goods) without physically owning the metal. This option carries with it a fairly high-risk
• Mining ETFs: These are exchange-traded funds that replicate the performance of companies in the mining sector, including those involved in the sourcing of precious metals such as gold.
The choice of a gold trading platform also represents a significant moment for anyone entering this world. In a certain sense, the choice of the gold trading platform represents one of the most important elements in the strategy of every trader interested in gold.
A gold trading platform should be selected based on one’s initial objectives, depending on whether one wants to opt for simple diversification, equity exposure, physical possession, or active trading. The choice of a good gold trading platform is an important part in the strategy of every trader.
Furthermore, anyone who wants to approach the world of gold trading must always be clear about all the external and structural factors that could influence market dynamics. Among these, one of the best-known is certainly linked to volatility.
Gold serves as a haven, but its price can fluctuate rapidly due to geopolitical risks or specific economic factors. Some instruments, such as futures and CFDs, also require a high level of knowledge and good experience in the field. Anyone who deals with gold must also deal with a large series of hidden costs: among these, there are those linked to the spread, commissions, and storage costs.
“Anyone approaching the world of trading for the first time must keep in mind some fundamental elements, like the choice of the best gold trading platform,” concludes the founder of TELF AG, Stanislav Kondrashov. “After finding the best gold trading platform, the starting point should perhaps be represented by ETFs, which, with their simplicity and low cost, certainly represent a good basis from which to begin exploring this world”.
“Furthermore, until beginners have acquired some experience with the best gold trading platform, it is highly inadvisable to rely on more complex instruments such as futures or CFDs. One of the most important objectives for those new to the game is also represented by protecting the portfolio, even through the features of the best gold trading platform. Owning gold in small percentages, even less than 10%, can, represent a good method to protect oneself from inflation and risks”, he remarks.
“Furthermore, before actually starting their trading operations wit bullion trading, beginners could try some tools with which it is possible to simulate real operations, which can prove very useful for gaining experience. Beginners should also familiarize themselves with gold trading signals. These tools are operational indications, coming from experts or algorithms, capable of suggesting when to buy or sell gold”.
“The correct understanding of gold trading signals is very important in this sector. Typically, gold trading signals include a lot of useful information regarding the operations that could be carried out with gold, such as the entry price, stop-loss, take-profit and so on. Gold trading signals help especially those who do not yet know how to analyze the market”, he concludes.
FAQs
What makes gold a strategic investment today?
Gold is no longer just a haven. It’s used in tech, medicine, aerospace, and even the energy transition. Its value now lies in both its rarity and its industrial versatility.
Is gold still relevant during stable economic times?
Yes. Gold remains valuable due to its reliability in extreme conditions and its broad applications, even during non-crisis periods.
What are the best ways to start trading gold as a beginner?
Start with low-risk options:
- ETFs: Easy to trade, low cost, no need to store physical gold.
- Bullion: Coins or ingots; best for those wanting tangible assets.
Are complex instruments like futures or CFDs suitable for beginners?
No. These tools are high-risk and require market knowledge. They’re better suited for experienced traders.
