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How Is Gold Formed?

How Is Gold Formed?

Gold is one of the precious metals that humans have had a long-term attachment to for years. However, it is as simple as any other metals that people use today. But then, it has a wide range of characteristics that make it unique and be highly-regarded by many generations.

Humans have for thousands of years been hunting this treasure. They dig through dirt and stone to try and lay their hands on it. Besides, people gift gold jewelry to their friends and family and even make golden trophies for awards. 

Have you ever thought about how gold came to be? Many people don't know how gold is formed. Some think it grows in the ground, while others think differently. However, if you attended a chemistry class, you know that gold is an element, and there's no way it grows.

So, how does it come into existence? This article will seek to provide answers to this commonly asked question. It will look into how gold's formed, why it is scarce, and where you can find it. Read to the end to understand the basics about gold, especially if you want to invest in it.

Let's get started.

Gold Occurs in Nature 

As mentioned before, gold is one of the inert elements in the periodic table. It only exists in its natural state within the earth's crust but isn't formed in the ground. This is what makes people confused about what gold is and how it gets formed such that we can use it.

Well, people find gold in different locations. Before people embarked seriously on gold hunting, it could be located on river banks, on the sides of rocks, etc. Knowing deposits like gold ores, nuggets, veins, and flakes, come to existence will help you understand how gold is formed.

But let's start by discussing the primary types of gold deposits.


This is a gold deposit formed from already existing gold. In short, it is secondary gold found in an area where gold mining has taken place before. Laterite rocks are plentiful in gold, and they come to exist because of weathering bedrocks and other chemical processes.

The fact that they're rich in iron makes them rusty red in appearance. You can find laterite gold deposits mostly in tropical or hot areas. These deposits are what prospectors mine from the earth and then extract gold from. This process aims at getting gold from its mixture with iron oxide.


Lode gold deposits are found within the earth too. They exist as valuable ores with definite boundaries and are separated from surrounding rocks to get extracted. Lode gold deposits form when fluids heated by the earth carry gold and form a crust.

There are different types of lode gold deposits. The difference lies in the fluid or magma's chemical and physical properties. Once the gold gets molten and infused into the gold, it settles somewhere else, where it gets mined and extracted.


This also refers to gold that's found in a secondary deposit. It gets formed from already existing lode gold deposits. Placer gold comes into existence because water erodes rocks that contain gold and other minerals. This happens when it rains and when stream water washes it off rocks that exist on banks.

Once these minerals get extracted, they flow into streams. They then settle in areas where the current of the streams slows down. This is the point where they accumulate and form a placer deposit. Placer gold deposits then get discovered after the rivers dry up.


The formation of intrusive gold deposits isn't much different from how lode deposits form. In this gold deposit, magma also penetrates rocks and melts them. It then carries minerals, including gold particles, and dries up in another location.

It is easy to extract gold from the dried-up crust formed by magma and minerals. All you need to do is separate the gold in every layer of the dried-up magma. There'll be other metals within the crust that you can split and use for other purposes.

Natural Gold Formation—How Did It Occur in the Earth? 

Various processes happen before gold gets formed. All the gold exists due to the energy produced when stars collide and explode. This can be when neutron stars collide or other stars collide in a supernova. The debris from dead stars is what becomes gold.

Such events mainly happened when the earth was getting formed. The gold and other elements that fell onto the ground sank to the planet's core. Without this, there could be no gold in the world today. Asteroid impacts that have bombarded the earth over the years have pushed gold closer.

That's why humans could discover gold without digging deep into the earth. Rock ores that host gold moved closer to the earth’s surface, making it easier to mine them. Besides, other natural happenings like erosions have continued to push gold closer to the earth's surface.

Why Is Gold Scarce in Nature? 

The other question that people often ask is why gold is scarce. The reality is that this scarcity has made gold valuable over the years. If gold were everywhere, no one would mind holding it because it wouldn't be as valuable as it is.

Now, this isn't to say that there's a shortage in demand. The scarcity of gold is just enough to meet the demand and supply in various markets worldwide. Thus, you can still buy and store gold without depleting what the market needs to operate efficiently.

The gold discovered around the world today has been made into various forms. For instance, you can find it in bars or coins. There are dealers in diverse markets dealing in gold. Acre, a seller of gold bars, is an excellent example of a trader in the gold market.

The world isn't producing as much gold as years ago. Most of the gold-rich mines in the world are already depleted. Thus, only a small amount of gold is coming into gold markets. The world mainly depends on gold discovered years ago and is circulating.

However, some countries like the United States, China, Australia, and Russia still produce a significant amount of gold. This is also keeping the supply of gold intact across the globe. And most of the raw gold produced is getting into the manufacture of jewelry, trophies for awards, etc.

Where To Find Gold 

Humans have extracted a lot of gold from the earth over the years. However, people are far from exhausting all the gold that the world can offer. One reason why extracting all the gold hasn't been possible is because it isn't economically feasible.

But there could be a lot more gold in the earth's mantle and core. However, there's doubt that the search for gold will ever get that far. 

Now, where can you find gold today? Gold is found in fractures, cracks, and veins stemming from the Earth's crust across the globe. If you are not prospecting, the best way to find gold is by purchasing it from a dealer. There are dealers of all kinds of gold operating in various markets worldwide. All you need to do is decide what type of gold you need and find a dealer.

There's no doubt that gold is an attractive investment. Many people have put their money in gold, so can you. All you need to do is decide what type of gold will be best for investment and meet your needs. For instance, you may choose to invest in gold bars, coins, or jewelry.

Much gold ore used in jewelry is actually an alloy of gold, mixed with zinc, palladium, copper, or nickel to create shades of yellow gold and white gold. 24-karat gold is considered the purest gold used in jewelry.

Gold coins are attractive investments that are, however, relatively expensive. The next option is gold bars, which are cheaper and more accessible. Various dealers are trading gold bars, and Acre can be an excellent example of a go-to gold bar dealer.

In addition, you can decide to buy non-physical gold. This can be investing in gold EFTs, stocks, bonds, etc. But then, it will help to know the pros and cons of each type of investment gold. Non-physical gold, for instance, doesn't give you the security you need as an investor.


Not many people, including established investors, can tell how gold came into existence. You may have heard of the California gold rush, placer deposits across South America, or the explosion of gold discoveries in Australia, Canada, and other countries across the 19th century and 20th centuries.

Many people come into contact with gold in shops or as gifts from friends and family. However, it is vital to know how gold exists if you are interested in investing in the gold market.

This article has discussed everything you need to know about gold formation. It has explored how gold gets formed and how it entered the earth. These tips will provide you with a solid foundation as an investor looking to enter the gold industry.

It has also discussed where to find gold as an investor today. As said, you first need to decide what type of gold will be a good investment for you. 

Contact Acre Gold to kickstart your gold investment journey. Reach out to us today for more insights.


How Is Gold Formed – American Mining Rights Association | American Mining Rights

The Scarcity of Gold | Outsider Club 

How Can I Invest in Gold? | Investopedia