A gold gram is the value, expressed in any currency, that one gram of gold would fetch if sold. There are three symbols used for gold in these circumstances. They are gg, AUG and GAU. The gold gram is used to set the price of gold, to measure the prices of other precious metals and for digital gold currencies.
The gram is a metric system of measurement. In imperial measures, precious metals are measured in troy ounces. One troy ounce is equivalent to 31 grams. When measuring other objects or substances, such as flour, Britain and America use avoirdupois ounces. One avoirdupois ounce of gold is equivalent to 28.5 grams.
Gold is a naturally-occurring metal with the chemical symbol AU. It is dense, soft and shiny. Gold has been an iconic metal for millennia. Ancient cultures across the world viewed gold coins, jewelry and other objects as displays of wealth and status. Gold can be mined for or panned when gold flakes enter the water system.
A gold gram is used primarily for exchanging money and goods. Historically, money was exchanged using gold coins. The value of the gold coin depended on the gold content. This varied because gold needs to be mixed with alloys such as copper; otherwise, it is too soft and malleable to be an effective coin. Gold, therefore, became essential for international trade and exchanges.
The gold exchange standard grew out World War 1 at the beginning of the 20th century. A national currency could be exchanged for a bill, which could then be exchanged for a currency that could be exchanged with gold. The system meant that a national currency would remain balanced against the gold gram, but also meant countries did not have to hold large amounts of gold reserve.
A gold reserve is a large amount of gold held by a central bank or, in America, the Federal Reserve. It is a value store used to secure a currency and, on rare occasions, to settle exchanges. Governments have the option of using gold reserves as a means of raising additional money for their budgets. The amount raised depends on the amount of gold sold and the value of the gold gram at the time of selling.
Digital gold currencies are electronic money based on the value of the gold gram. They are similar to the paper certificates used in the gold exchange. They are used as a universal currency, for asset protection and for bullion investment.