Gold Price Per Ounce – Live 2012

Gold Price Per Ounce

When all hopes dwindle in the equity market, investors turn to gold and silver investment.  Therefore, it is not wrong to say that the current surge in the price of gold per ounce is driven by the fears among investors. Since time immemorial gold has been an intricate component of trade and commerce over the globe. But, what we know of is not truly the real price of gold because the existing market condition is the outcome of high levels of inflation and gradual drop in the value of currencies. In other words, gold has been used as money, and investors rely on this precious metal against economic, political and social turmoil.

How Investors Determine The Real Gold Price Per Ounce

Among the circle of investors and gold traders, the price of gold per ounce is preferred standard used in trading. While there are various ways to invest in gold namely— coins, bars, gold bullion, certificates, ETFs et al— the gold price per ounce today is directly proportional to the stock market.

Types of investment in gold

  • ETFs— Newcomers eager to invest in gold may opt for Gold Exchange Traded Funds (ETFs) where you are gauranteed gold purchase in the form of certificates to establish your holding in the bank vaults. For some individuals purchasing gold certificates save money on gold trading, delivery, storage and insurance expenses suit as a viable investment plans, but some may prefer actual physical ppossession of the yellow metal to be assuring. At present, gold price per ounce US Dollars hovers around $1,824.72 owing to the undecisive market.
  • Gold stocks— Investing in gold stocks is all about purchasing shares of a gold mining company, however the value of the shares may be determined by various factors. Regardless of the value of gold, the value of the share depends upon the amount of gold produce by the mine during its lifetime.
  • Buying bullion- coins or bars— Gold coins or bars carry advantages over other means as they usually are legal and not taxed. They are easy to carry, store and sell as and when the situation arises. Therefore, the yellow metal has traditionally been a good buy with a secure future in uncertain markets.

As per statistical records, over 95% of the total world’s gold is stored as wealth in bullion vaults or as jewellery items. Nevertheless, the demand for gold continues to grow at a steady pace of about 1.6% p.a. But, with the ongoing highly charged global economy, since May 2011, the international trading platforms have suffered losses with almost $110 billion equity funds being withdrawn. Given the current circumstance, the chaotic stock markets have sent shockwaves across various financial transactions resulting in record-high gold price per ounce history in August, 2011.

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