Gold Value Per Ounce: Investing in The Smart Way
Gold has always been regarded as a commodity and a currency. Over the years, the value of this precious metal has increased drastically. When you take a look at our history, gold was used as money in many different civilizations. Since then, gold has been a symbol of luxury, wealth, and aristocracy. It is also regarded as symbol for powerful and well-loved individuals.
Today, the meanings attached to gold have not changed at all. The gold trade platform remains to be one of the most lucrative yet elusive trading and those who have access to gold still enjoys the wealth and fame that comes with it. Due to advances in mining, the supply for gold has increased and now, it is being traded in most parts of the world.
According to Gold Price OZ, the estimated Gold Value Per Ounce for 2013 is 1327.1 US dollars. You’re right in thinking that it’s a lot of money for an ounce of a shiny metal. If you are considering investing in the gold, here are some of the things that you have to know:
How to buy gold
Before you start investing your money into the gold trade, you have to know first the different ways of acquiring gold. Although Gold Value Per Ounce remains the same, the techniques used to get the commodity differs from one another. The most common way of getting gold is by buying jewelry made of gold. However, some investments experts do not recommend using this technique due to the massive losses and heavy risk that you can be exposed to when you choose this technique. Experts estimate that almost 10% of the value of the gold is loss in the process of trading the jewelry across different platform.
Another technique for acquiring gold is through bank coins. Bank coins are a bit more expensive than jewelry and they are not as common as the former. The disadvantages of bank coins include less liquidity and loss amounting to as much 5-10% of the original gold value per ounce.
The trend nowadays is to participate in the Gold Exchange Traded Funds. These are like mutual funds but the difference is that the investment is made in gold. To determine the value of the investment, a gold calculator (calculator for determining the value of the gold) is used. The advantage of using this technique is that there is more fidelity of Gold Value Per Ounce vis a vis the exact amount invested, transactions can be done electronically, and updates are always available.
Risks in the gold trade market
When you compare gold prices in the recent years, you may see that the gold per ounce price is heavily fluctuating. The gold trade, unfortunately, is heavily affected by a lot of factors which makes it challenging to produce a steady, reliable trend. However, trading in the gold does not carry that much risk in terms of losing your capital because as long as there is gold, your investment is secure. In times when the value of gold seems to decrease, all you have to do is to wait until the price for gold goes up again. According to investment experts, the real risk posed by this market is the opportunity cost of investing in other avenues. For example, you could have been better off investing in the petroleum industry rather than putting your faith and money to the gold trade platform.
Gold Value Per Ounce Liquidity
When you look at gold value per ounce, let’s say the 24 carat gold price, you may see that the conversion rate from gold to cash is very detailed and transparent. This is so because gold is heavily monitored. An ounce of gold costs so much so it is imperative to make sure that everything is accounted for. That is why gold investors are shown how the computation is done up to the last decimal point.
On a smaller scale, we can look at the liquidity aspect of gold when it comes to pawnshops. Any gold item that you have will easily be converted into cash when you take it to pawnshops. However, the problem with this area is that the cash is usually not enough to pay for the sentimental value of the gold item that was sold or pawned.
How You Can Absorb The Trends According To The Price of Gold per Ounce
To give you a better understanding of gold value per ounce through the years, here is a brief summary of gold price trends for the recent years.
In 1999 gold value per ounce is at 300 US Dollar. The price remained at that range until 2004 when the price of gold billed at 450 USD per ounce. This was followed by a steady increase in 2006, when the price of gold is at 600$ per ounce. In 2008, it was 800-1000 USD an ounce and in 2012, it reached an all time high at 1800-2000 US Dollar per ounce.
The year 2013 opened strong for gold traders as the price of gold is at 1650 to 1700 $$ an ounce in January and February. However, the gold value per ounce started declining in the month of March, when it was billed at 1550 $ an ounce. In June 2013, the price further decreased to 1400 US Dollars an ounce and in July 2013, it is around 1300 to 1200 US $ an ounce.
All these data were curated from goldprice.org and you can check the site to see for yourself. The gold price trends presented there can also give you a more visual representation of how fickle and fluctuating this data can be.
Investing for your future is not a bad idea. Just make sure that before you spend any money, your investment plan is as solid as gold.
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