For centuries, gold has always been considered a sign of wealth and power. It is a highly sought after precious metal. This is because it is difficult to find large deposits of gold. The scarcity of gold resources has made it such a valuable element and made the value of gold bullion so expensive. Because of its value, gold has become an excellent form of investment.
By buying gold bullion and keeping it safe, you are assured that when the value of paper money falls, your gold remains valuable. This guarantees you a more stable and secure future amid the unpredictability of today’s economy, especially with the deflation and inflation of the value of money around the world.
What you really pay for
Understanding the price of gold is critical to smart buying and investing. The price you usually see for this precious metal is based on weight per ounce or troy ounce. The type of gold varies depending on the origin and form. They come in the form of coins and bars that can be purchased and invested.
Besides weight in ounces, there are other factors that affect the price of a gold bar, namely purity and the spot price, which changes every day. The weight of a gold bar indicates how heavy the bar is. Most manufacturers already weigh gold bars during production. The weight is then punched out onto the ingot. It also serves as a reference for you if you want to double check the weight of the precious metal.
Purity refers to the amount of gold in the bar. The purest gold bar is 9999 fine, meaning it contains 99.99 percent gold. In some countries, the purest gold is 96.5 percent, while in others it is 98.5 percent. Its purity depends on the country in which it was made and how much alloy and gold was mixed together. The gold mixed with the alloy makes it sufficiently hard and resistant to damage such as scratches and dents. Pure gold is soft. Therefore, there are no products that are 100 percent pure. Before manufacturers can shape them into coins or bars, gold must be mixed with another type of metal alloy, such as copper.
The spot price of gold usually fluctuates throughout the day. This is why it is important to monitor spot prices. By checking this, you will be able to determine the price of buying and selling gold bars, and you will be able to track the growth of your investment. Most websites that sell gold provide the current spot price for reference.
Most spot prices show the price per ounce. And to calculate the value of the gold bar you want to buy, get the weight in ounces and multiply it by the current gold price or the spot price. Websites that sell gold also provide their own calculator for the convenience of buyers when calculating the price of a gold bar to prevent confusion due to miscalculations. For more information, contact any accredited dealer or read consumer reviews and testimonials online.