For the first time in six months the value of gold has reached $1000 per ounce. The move could be seen as a sign that investors believe the worst of the global recession is over. It could be seen however as a way that investors are safeguarding their investments against recession.
Over the previous year gold’s value has risen 13.6%, showing it is still one of the most favoured investment choices during inflation. This could be viewed two ways. Optimism would have us see it as a sign of recovery, getting out of the recession.
If you take this view, it would be a good idea to buy gold bullion coins coins before their value gets too expensive for you. Selling them in the future will give you a profit on your investment. You could also sell any gold bullion coins you own now and get a better price now than you could have one or two months ago.
On the other hand you might see high gold prices as a sign that we are still in the grip of the recession as gold is used to protect wealth. This can be seen as the US dollar which normally moves in the opposite direction to gold, has been declining during that same time.
The rising price of gold is due to uncertainty all the way from personal investors right through to institutions. Governments use their gold reserves as protection against drops in their currency, gold is a safe way to store your money.
How interest rates are going to change is one of the questions financers are asking. This has led to stock piling and hoarding of gold.
In March 2008 gold reached an all time record high of $1032.The value of gold reached a record high of $1032 in march 2008. Now is the first time gold has reached $1000 an ounce since March this year.
Troy ounces is the measurement used to measure gold. One ounce is equal to 31.1035 grams or 480 grains. One troy ounce is equal to 1.09711 avoirdupois ounce which are widely used to measure weights in the US and UK.
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