In search for the current gold price per ounce? You have come to right place, because this website is created to provide you with information about gold prices in different countries and other related guides such as gold investment, history of gold price, info graphics and charts of increasing and decreasing rate of gold price.
The gold price per ounce varies each and every day that the markets are opened. Gold is priced by a troy ounce, which equals 31.1034768 grams. There are almost as many reasons that gold changes price so often, as there are stars in the sky. Below we will detail a few of the more significant factors that affect the price of gold to hopefully educate you on the subject, and later enable you to profit from the information that you were able to learn at our website.
First gold is a commodity, but unlike all other items in this category, it is also a currency. Commodity prices fluctuate based on the law of supply and demand. What this means, is if there was a very robust wheat harvest this year there will be more of it available for sale, and its price will decrease. However, if the total crop that came in was a little less than expected, the price of wheat would increase, because there is not enough to go around for everybody that needs it.
The law of supply and demand also affects the price of gold. But, the factors influence the supply of it are either more political or economical, as opposed to the actual amount of it being produced each year, since that quantity is relatively stable. If the worldwide economy is doing well, investors would rather be in stocks or bonds, as opposed to gold which they hold continuously in varying percentages as a part of their portfolio.
If the economy is not doing so well, the opposite is true. So, based on how the economy is doing will determine how much gold investor’s will maintain. If they are selling their gold, the price will decrease, if they are increasing their holdings of the precious medal, the price will increase.
Second, unlike all other commodities with the possible exception of oil, political events can and do have an affect on the price of gold. If someplace in the world, a large war were to break out, investors will flock to gold as a safe haven until the disturbance calms down. Of course, when investors start purchasing more gold, the price will increase.
Third, gold has been used as a currency since almost the beginning of mankind. Although it is not an official currency of any particular country, it is thought of as a kind of worldwide currency. Investors and governments will hold gold to protect themselves against a drastic drop in their home countries currency value.
In addition, they will also maintain supplies of gold as a hedge against inflation. The concept here is that if inflation were to go up drastically, the price of gold would exceed it, thus protecting the financial assets of the investor that has it in their portfolio.
The above mention reasons are just a few of the most prominent ones that affect the gold price per ounce. There are many more, just as there are a ton of experts all over the world today that specialize in predicting its price, based on all of the factors that can influence its movement.