How Is Gold Formed?

This article might break your heart if you’ve ever believed the tale of leprechauns or how seekers of gold may find it at the end of rainbows.

Leprechauns don’t exist, and there are no gold pots in the sky, so how is gold formed?

Gold is one of the precious metals that aren’t truly formed on Earth.

Let’s dive in and examine where gold comes from, how much gold is in the world, and the various uses of this precious metal in the world today.

How Is Gold Formed

Where Does Gold Come From?

Gold travels back to Earth from outer space.

The precious gold metal is created inside huge stars whenever they explode into a supernova. The star supernovas then form precious gold, which comes back to Earth.

During the Earth’s formation, gold sank towards the planet’s core; this action, coupled with asteroid impacts led to the gold presence on the Earth.

The asteroid impact stirred the gold already in the planet’s core and pushed gold into Earth’s crust.

Miners can find gold in rock ores. Due to erosion that separates gold from other elements leading to gold sinking, gold can also be found by miners in the ocean, stream beds, etc.

Gold mine

After earthquakes, gold deposits itself onto rock surfaces and within volcanos after their eruption.

India and South Africa have the largest gold deposits in the world. India also consumes the most gold products than any other part of the world.

How Much Gold Is In The World?

According to the World Gold Council, 190,040 metric tons of gold worth 7.5 trillion U.S. dollars have been mined worldwide.

There are also roughly about 1 million tons of gold in the outer part of Earth’s crust that hasn’t been explored yet.

gold bars

How Is Gold Used Today?

Gold is a very malleable precious metal, so it is used in various industries and for diverse purposes.

Here are a few ways gold is used today:

Fashion Industry

One of the major industries where gold is used for various purposes is the fashion industry.

Gold is recognized as a symbol of royalty and luxury. It has been used in the past and currently by royalty to showcase their status.

Fashionable Gold rings

People looking to make a statement in the fashion industry use gold to make jaws drop.

Since gold is associated with being top quality and the best, it’s majorly worn by those who want to be tagged the best.

Does gold rust?

Tech Industry

Gold is used in manufacturing electronic devices as it’s a great conductor of electricity, plus it doesn’t tarnish.

Some of the problems electronic devices face are due to corrosion. Gold helps eliminate problems in electronic devices that occur due to erosion because of its non-tarnish property.

gold is used in iphones by apple

Electronic devices which contain gold are very dependable and can be used for a very long time. Due to its dependable properties, gold is used in wires, switches, connectors, etc.

You can also find gold in mobile devices, computers, GPS (Global Positioning Devices), calculators, etc. Gold is also used in televisions and kitchen appliances.

Why gold is used in electronics?

Finance Industry

Gold is also majorly used in the finance industry. Although individuals do not use gold in personal transactions as the gold standard is difficult to manage, gold is still widely used in the industry by investors.

Many investors looking to diversify their portfolios buy gold and hold it as a form of investment. Gold is also a great investment because of its ability to withstand inflation, making it one of the best financial investments to make during inflation.


One thing that’s popular among celebrities is gold teeth, braces, etc. Due to the usage of gold in teeth by celebrities, many individuals have moved to use gold for fillings, crowns, dental appliances, and crowns.

gold is used in iphones by apple

Gold is also one of the metals that’s safe to use in dental clinics, and it’s also very efficient.


Gold is formed from outer space, making it one of the best materials for aerospace equipment.

Since gold is a great material for aerospace equipment, NASA uses gold in creating every single one of their space vehicles.

Satellites are also coated in gold to help regulate temperature. The use of gold in satellites prevents dark-colored satellite areas from absorbing too much heat. If these areas absorb too much heat, it can cause a significant malfunction of the satellites. But since gold has low shear strength, it can work as a lubricant in space.

Gold is, therefore, one of the important materials that make it possible for individuals to explore outer space.

Does Gold Form Naturally on Earth?

Interestingly, gold does not form naturally on Earth like many other minerals and metals. Instead, gold is believed to have been delivered to Earth by meteorites about 4 billion years ago. The heat of these meteor impacts was so intense that it caused the gold and other heavy elements to melt and sink into the Earth’s core. The gold we mine today is thought to have been brought to the Earth’s crust by deep-seated volcanic action.

How Long Does it Take for Gold to Form Naturally?

The process of gold formation takes a lot of work. From its initial introduction to Earth through meteorites to its journey from the Earth’s core to the crust, we’re talking about timescales of billions of years. Then, there is the time it takes for geological processes to concentrate this gold into deposits that are economically viable to mine. These processes include weathering, erosion, deposition, and concentration of the gold particles in alluvial, eluvial, or lode deposits.

Can Gold be Created?

While gold cannot be ‘created’ typically, it can be produced synthetically. However, this is a complex and economically viable process. Gold synthesis occurs via a nuclear reaction in a particle accelerator, where other elements are bombarded with subatomic particles until they transmute into gold atoms. However, the cost, time, and energy required for this process far outweigh the value of the gold produced, making it an impractical method for gold production.

How Much Gold is Left in the World?

Estimating the amount of gold left in the world is challenging due to many factors, including the difficulty of exploration and the constantly changing technology and economics of mining. However, some industry estimates suggest that approximately 50,000 tons of minable gold are still in the ground. Since humans have mined about 190,000 tons of gold in history, this leaves about 20% of all the gold ever mined underground.

How Much Gold is in Ocean Water?

Ocean water contains gold—in fact, it’s estimated that approximately 20 million tons of gold are dispersed throughout the oceans. However, the concentration is very low, around one to two parts per billion. Given the current technology and economics, it is not feasible to extract gold from seawater. The cost of extraction would far exceed the value of the gold recovered.

Gold Investment

Gold has been a symbol of wealth and currency for thousands of years. Today, it remains a vital role in many investment portfolios due to its status as a ‘safe-haven’ asset that can hedge against inflation and currency fluctuations. Investors can invest in gold in several ways, including buying physical gold (like coins or bullion), purchasing gold exchange-traded funds (ETFs), or investing in gold mining stocks. Each method has advantages and considerations, so it’s essential to research and consider your financial goals and risk tolerance before investing in gold.

The story of gold’s formation and presence on Earth is a fascinating journey that spans billions of years and reaches the furthest corners of the universe. As we explore the potential of gold in the future, from its economic and cultural significance to its role in technology and space exploration, there’s no doubt that this precious metal will continue to captivate our interest and imagination.

Frequently Asked Questions

What is Gold created out of?

Gold is usually created from platinum or mercury. The natural radioactive decay that occurs when these elements’ nuclei are bombarded with neutrons can lead to gold.

Why Is Gold Precious?

One of the main reasons gold is precious is the unique way in which this precious metal is formed.

Its unique formation process is something that’s out of this planet literally.

Another reason why gold is precious is because of its scarcity. Due to this scarcity, gold is deemed more valuable by both investors, industries, and consumers, which is why it is widely sought after by various individuals.

Also, gold is rare, but it also doesn’t tarnish, which makes it even more valuable. Gold can also be molded into any object, and it’s very eye-catching, which is why the jewelry industry uses gold to its fullest to create shiny and pretty jewelry. 

Gold is a great conductor of electricity, and manufacturers in the technology sector can use gold to power devices like mobile phones and computers.

What kind of soil is gold found on?

Black sand may sometimes indicate the presence of gold. Although the presence of black sand does not mean that gold is close by,  black sand simply indicates that the soil has many minerals and metals like gold.

Whether you are new to gold investing or have been a collector for years, it is essential to research and work with a reputable dealer. American Bullion is a trusted resource for those looking to invest in gold IRAs, offering a wide selection of gold coins from around the world and expert guidance on which coins are right for you.

So why wait? Invest in gold coins today and start building a brighter financial future.