A century ago, gold was worth $20 an ounce. Today gold is trading between $1,100 and $1,900. That is a huge move, however in real terms, the price hasn’t really gone up that much, the thing that has changed is the currency in which the metal is quoted. The dollar has depreciated in the last century. It has lost close to 97% of its value since it was first introduced by the US Federal Reserve in 1913. The value of gold has stayed relatively constant in terms of purchasing power. Gold can lose value due to speculation, market manipulation, demand and supply and other factors. If the dollar keeps losing its value then gold will reflect that currency depreciation by steadily rising in price.
When was gold at its all-time high
The price of gold rose to its all time high in August 2011 when it reached $1,900 an ounce. Nominally, this wasn’t the first time it rose that high. In January 1980, gold peaked at $850 per ounce. When we take inflation into consideration, then the 1980 price increase was the highest. In 1980, $850 translates to $2,475 in 2011 and $2,708 in 2018. These are adjustments that are based on the Consumer Price Index (CPI). This index has not stated the real effects of real-world information the last couple of years. Economists believe that gold could run significantly higher even after CPI adjusted figures.
Investing in gold bullion
Gold is a great investment with real value regardless of when it is bought or sold. You can buy gold bullion in three forms.
– Gold Coins
– Gold Bars
– Gold Rounds
Gold can be bought by the gram, ounces or kilograms in the form of gold bars. The size of gold bars can vary in weights. When buying bullion as an investment you don’t even have to take physical possession of the gold. Often gold bullion would be stored in a dealer’s safe, a bank or some other secure facility. Gold investment can be represented on paper to include certificates, Exchange-traded products or gold accounts. You can always invest in gold jewellery. It is not generally regarded as bullion, but it is a good gold product that is also very functional. Buying jewellery is easy too and it can be sold just as easily.
How to buy gold bullion
Investing in gold and buying gold bullion is easy. Before you buy verify all the costs and fees before you commit to buy the gold bullion. Ask questions if you are unsure about any part of the sale. There are thousands of bullion sales made all over the world everyday. These continue to grow as more people look to gold bullion as a safe haven for their investment.
Where to buy gold bullion
You can buy gold bullion from a gold buyer or dealer. There are physical as well as internet based bullion dealers who buy and sell gold. Finding a local or an online gold bullion dealer is not easy. It requires a lot of research to determine the reputable dealers you can use and the kind of prices they offer.
