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Basic Information Relating To How Each Investor May Value An Ounce Of Gold

By Gerald Kennelly

For time immemorial, gold has been revered as one of the most valuable metals. In fact, it is one of the oldest metals to be discovered. Man has utilized it for ages, and has come up with unlimited number of uses. Nowadays, this precious metal has a million uses, one very different from the rest. It has been uses as the factor that determines the level of investment. The reason for this is that it has a stable value as compared to money. However, there are still a factors that affect its price. Each investor may value how much is gold differently.

Time is one of the many factors that will affect the spot price of gold. As time advances, so does its price appreciate. An investor who was operating ten years back will not attach the same worth to it as does the investor who will be operating in ten years time.

Its supply also determines the price. When the mines run out of deposits, the supply will not be available to fit its demand in the market. An investor in the situation where there is more supply will price it less.

Price manipulation has also been affecting its value for a long time. Those who are involved in the association and cartels can attest to this fact. For those who are in a market that is under major control by these trade organizations will find it to be quite expensive. Therefore, they will price an ounce of gold at a higher rate than that of the one who is in a situation where there is less control over its price.

When there is a very high demand for it, the supply becomes unable to fulfill the needs of all the consumers. The little metal that is available is thus sold at a very high price. During this period, an investor will view it with such high regard and at a high rate. When there is a low demand for it, the prices go down and investors will view an ounce of gold with a very low regard.

The government will at times interfere with the market and control the prices. It does this mainly by taxation. In economies where the government taxes more on this valuable metal, it is more expensive and thus investors rate it more.

Location is another huge factor affecting it. In areas where it is in plenty, and where proper mining of it is carried out, its price is lower than areas where there is no mining of this valuable metal. Investors from rich mineral deposits areas will thus attach less value to the ounce of gold. On the other hand, the one who comes from an area which it is less will attach more value to the same ounce of gold.

Currency valuation is another huge determinant. In some countries, the rate of currency is quite low while in some others it is very high. For those who reside in countries where the rate of currency is quite high, this valuable metal will seem cheaper. Investors in these countries will term an ounce of gold to be of little value. The countries where the value of currency is very low will have it seeming more expensive, thus investors in these countries will term an ounce of this valuable metal to be quite valuable.

Income of the investor plays a key role in the determination of its price. An investor who earns a lot of money will not consider it to be worth more. The one who earns a little money will find it to be quite valuable.

This precious metal is a hedging tool, a storehouse of value, a way to see incredible returns, and it has barter value if currency ever becomes worthless. Investors should therefore be careful when dealing with cartels. Choose reputable ones.

What may be termed by one investor as a reasonable amount of this valuable metal can be negligible to another. When making an investment in terms of this valuable metal, there will be a variation in the size of investment depending on the above factors, and many more, even though the quantity of gold that was used was the same. This thus shows that each investor may value how much is gold worth differently.Discover how much is an ounce of gold worth will help you accomplish your investment goals.

If you are looking to see how current gold price per ounce is calculated, we recommend that you take a look at our online page right away. Read the article is an ounce of gold worth the market price right now by how much is an ounce of gold worth now.

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Article Citation
MLA Style Citation:
Kennelly, Gerald "Basic Information Relating To How Each Investor May Value An Ounce Of Gold." Basic Information Relating To How Each Investor May Value An Ounce Of Gold. 9 Apr. 2014. uberarticles.com. 21 Jul 2014 <http://uberarticles.com/finance/basic-information-relating-to-how-each-investor-may-value-an-ounce-of-gold/>.

APA Style Citation:
Kennelly, G (2014, April 9). Basic Information Relating To How Each Investor May Value An Ounce Of Gold. Retrieved July 21, 2014, from http://uberarticles.com/finance/basic-information-relating-to-how-each-investor-may-value-an-ounce-of-gold/

Chicago Style Citation:
Kennelly, Gerald "Basic Information Relating To How Each Investor May Value An Ounce Of Gold" uberarticles.com. http://uberarticles.com/finance/basic-information-relating-to-how-each-investor-may-value-an-ounce-of-gold/


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