Apr 2012


Apr 2012

Gold Price per Ounce

By StoneX Bullion

Gold Price per Ounce

Gold Price per Ounce Formation

The gold price per ounce is a useful tool for small investors as well as for the biggest buyers and traders representing central banks. Gold is usually measured in troy ounces, a troy ounce being equal with 31.1034768 grams.

The gold price per ounce in announced daily, once when the gold market opens and the second occasion on a day to announce this price for the precious metal is when the market closes. Therefore, investors must be always kept up to date regarding the evolution of gold, no matter if they are trading gold in its physical form, as coins or bars, or if they are trading through futures and options.

The main two factors that contribute to the formation of the gold price expressed in troy ounces are supply and the demand. These are two basic economic indicators which establish the prices for any other commodity traded on the market. It does not matter if those commodities are measured in troy ounces, grams or kilograms.

The way supply and demand influence the gold price per ounce is very simple: if supply exceeds demand the gold price will decrease; if supply of gold is lower than the demand for gold then the price will increase and those that have speculated that this will happen will make a profit.

Gold Price per Ounce Indicator for Investors

The gold price per ounce will benefit from a rapid increase in situations that are not desired by anyone as are the unfortunate political events like a war or a riot. When this kind of event takes place and the country is catastrophically influenced, the immediate reaction of the individuals living in that country will be to protect their assets. The safest way to do that is to invest in gold.

If investors analyze this kind of situations they can make a profit if they buy gold when the price is just beginning to increase and they must sell that quantity of gold before it starts to decline. This is one way to speculate on the evolution of the gold price per ounce or gold price per gram.

Another method is to invest in this precious metal when everyone is selling it and by reading graphic presenting the gold price per ounce you will notice when that happens. People mainly do that when a country has a strong economy. When the economy of a country enters on a path of decline people will start buying gold increasing its price. That is the time to sell that gold bought at a lower price. The spread is your profit.

Gold Price per Ounce Evolution

Gold is a great precious metal for investments, for storing value, and to use it as hedge against inflation and currency devaluation. The gold price per ounce is the indicator that will show individuals when it is the best time to make investments. For example if we were to analyze the evolution for the gold price per ounce from 2009 until current year, we will notice that overall gold was on an ascending path.

Experts all around the world analyze every day the evolution of the gold price per ounce trying to make prediction for the future based on the past and present level and by following some of these predictions investors will know when it is the right time to buy or sell gold.