Gold is one of the most sought after and precious metals in the world, not only because it is used in jewelry, ornaments, and wearable elements, but because it is a significant investment and valuable asset. These days, Gold is also widely used in the production of certain medicines, electronics, beauty products, and medical devices.
However, gold prices do not always remain stagnant and have seen their fair share of highs and lows. Still, it is one of the safest and most widely used investment forms. Here are some more details on the history of the gold price, factors that influence it, and the current price of gold.
Gold Price History
The gold price history has changed, dating back to the British Era up to the current phase. Looking at the history of gold prices, you may make a more straightforward decision about why it is vital to buy gold and how steadily it has grown over the years.
As gold is usually denominated in U. S. Dollars, it becomes easier for people to buy when the dollar value comes down and sell when the price rises. Although gold prices have come down from their all time highs in 2011 and 2018, they have remained elevated over the past decade.
This high point found its bottom in 2016 and has still managed its stability. There are historical prices of gold available online that you can look for to have a detailed analysis of the gold price chart over the decades, which will give you a better understanding: is now an excellent time to sell gold or buy it?
What Factors Influence the Price of Gold
The price of gold constantly changes, but that never stops people from buying it, no matter how high the prices get. During the previous inflation and boom seasons, gold prices have seen drastic highs and lows. While people love to buy an accessory made of gold and even cherish their broken gold jewelry, very few people ponder what decides the price of their valuables. Here are some details regarding the five main factors that significantly affect the price of gold today:
Reserves of Central Banks
Central banks of the world hold gold and paper currencies in their reserves. Gold prices rise as these banks shift their monetary reserves from paper currencies to gold. According to 2019 statistics by the World Gold Council, Turkey was the biggest buyer of gold, followed by Poland, Russia, and China.
In total, the governments bought a whopping 650 tons of gold in 2019, which decreased only a bit from 656 tons, which was bought in the year 2018. This buying high was never seen in the last 50 years of the world’s history.
Value of Dollar
Because gold is a metal denominated by the dollar, it is inversely related to the value of the United States dollar. This means that a more robust and higher dollar rate keeps the gold price lower, and a weaker one raises the price of gold simply because people buy more gold when the dollar is lower.
This is also why gold is often protecting itself against inflation. Since inflation happens when the prices of everything go up due to a diminishing dollar, when inflation rises, so does gold.
Demand for Jewelry
According to the World Gold Council, gold jewelry accounted for only half of the actual demand in 2019. Among many other countries, China, the USA, and India are the largest consumers of gold jewelry in terms of volume.
A separate 7.5% demand is separated for industrial and technological use of gold in electronics, like the GPS and medical equipment such as stents. Therefore, just like any other product, how much is gold worth is directly proportional to supply and demand. Gold prices also increase when the demand for jewelry, electronics, and consumer goods rises.
As most currencies and international products have seen profound change, gold prices have somewhat seen and experienced a stable and steady increase. Since gold is often used to protect against currency devaluation and economic uncertainty, its stability makes it a durable and stable investment for many people. As economic instability, political uncertainty, recession, and inflation approach, people tend to invest more and more in gold due to its enduring value.
When the market and returns for equities, bonds, and real estate diminish and decrease, people tend to take more interest in investing in gold, and as the demand increases, the price of gold also increases.
The biggest gold mining and producing countries are South Africa, Russia, Peru, the United States, China, and Australia. As supply and demand are co-related, the production and mining of gold also play an essential part in making the gold price fluctuate. As most of the gold has already been mined, it requires more and more effort to get high-quality gold now. In simpler terms, the cost of mining gold is much higher than the value of gold that is retrieved. The production and dangerous mining procedures also add more value to gold prices.
What is the Price of Gold Today?
The price of gold is constantly fluctuating, and the price of gold today (checked September 2022) is $1,752.10 per ounce, which can change every few minutes. There are 28.34 grams in one ounce and the price of gold per gram today is $56.54.
How much gold is per ounce directly depends on all the factors mentioned above, which include market value, dollar value, demand value, investment value, and Central Bank Reserves
Although gold prices fluctuate on a daily basis, the commodity has provided sellers with great returns, making now a great time to sell gold.
If you are looking for a credible dealer to sell gold online, contact Cash for Gold USA, as we excel in providing you with the best payouts in the industry, along with a safe and secure online transaction. Questions? Give us a call at 1-866-300-1430. We are here to help.