Why Gold Investors Should Keep an Eye on Apple
Apple, one of the most well known and successful technology stocks on the market today, is commonly watched by investors and early adopters alike to see what new advancements will be hitting society in the upcoming months and years.
However, those looking to invest in the stock market should be looking to Apple for more than just a reason to purchase their stock and see ample returns. WIth Apple’s new Apple Watch, the company is making an even bigger impact on investment opportunities such as gold.
So if you’re looking to purchase gold as a way to diversify your investment portfolio, here’s why you should be aware of how Apple is affecting the market.
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Stocks Affect the Price of Gold Investments
Both the stock market and the gold market are ways to invest your money and look for a decent return on that investment. However, it’s important to know how these two affect each other. According to SilverMonthly.com, a well performing stock market can make other forms of investment less attractive. This is especially the case when a particular stock is using or planning to use a large amount of gold in their products.
For example, in order for Apple to make the gold Apple Watches, they would need to purchase around 30 percent of the globe’s yearly gold production, having a big effect on the gold market for investors. With Apple having control of that amount of gold, they would become one of the biggest players in the gold market, giving them a lot of control over the price and value of gold.
Using Gold in Products
Now that Apple is using gold not only in the electronic components of their products like many other tech companies do but are also using gold on the exterior of their devices, there’s no telling how far this new trend could go and how much gold could be used when creating newer and more updated versions of Apple’s products. However, the gold that Apple will be using is a little different than the gold you would purchase in the gold market.
According to Annalee Newitz and Esther Inglis-Arkell of Gizmodo, the Apple Watch Edition, which is the one that contains the gold, will actually be made of gold that has been made using a process that will make the gold harder and more resistant to scratches than regular gold. This has been done by mixing gold powder with ceramic powder and then heating and compressing it until it has the correct properties for Apple’s gold composite. But will this different kind of gold have an effect on the gold market itself?
Anthony Wing Kosner, contributor to Forbes, says that the Apple Watch Edition will use able half an ounce of gold to be manufactured. This is where that 30 percent of the world’s annual gold production, as mentioned earlier, comes into play. Apple has the potential to make a big splash in the gold market with the creation of their watches.
So for those looking to invest in gold in the near future, make sure you have your eye on Apple and the way they will be contributing and affecting the market with their increased use of gold.