Gold is the most precious metal on earth. People even make their wealth estimations in term of country. Due to the uncertainty of the factors that money presents, in terms of devaluation and the like, people have been forced to start making their investments in terms of this precious metal. However, it is not so certain in value how much is gold worth , and each investor may value an ounce of gold differently.
Time is one of the many factors that will affect the gold spot price. 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.
A shortage of it in the mines will mean that there will be less supply in the market. The lesser there is, the higher the price will be. During the period when there is a large supply of this valuable metal, investors will find it to be quite inexpensive and will hold less value for it.
Price manipulation is another factor that will make the price vary from one investor to the other. There are various cartels that usually control the price of this valuable metal. For investors who are getting it from cartels that have really hiked the prices, an ounce of gold will be quite precious, as compared to one who is used to the free market where no one is in charge of controlling the prices.
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 affects the price in that there are areas that are rich in mineral deposits of this metal, while others have no mineral deposits of it at all. The investors from the rich mineral areas usually acquire it at very low prices and will thus not attach much value to an ounce of gold, as compared to those from an area with very little mineral deposits.
It is also quite dependent on the rate of currency. When the valuing of the currency goes down, this valuable metal will thus become quite expensive. This can be proven by making comparisons between investors from well off countries that have a very high rate and those from countries whose currency has a low rate. To the one from the country with a high currency rate, an ounce of gold will be of lesser value as compared to the one from a country with a lower rate of currency.
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.
To sum it up, the above factors, as well as many others, will cause the price of this valuable metal to change from time to time. This thus proves that each investor may value an ounce of gold differently. What one may consider sufficient enough to run their business, another will term as too little.
Time is one of the many factors that will affect the gold spot price. 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.
A shortage of it in the mines will mean that there will be less supply in the market. The lesser there is, the higher the price will be. During the period when there is a large supply of this valuable metal, investors will find it to be quite inexpensive and will hold less value for it.
Price manipulation is another factor that will make the price vary from one investor to the other. There are various cartels that usually control the price of this valuable metal. For investors who are getting it from cartels that have really hiked the prices, an ounce of gold will be quite precious, as compared to one who is used to the free market where no one is in charge of controlling the prices.
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 affects the price in that there are areas that are rich in mineral deposits of this metal, while others have no mineral deposits of it at all. The investors from the rich mineral areas usually acquire it at very low prices and will thus not attach much value to an ounce of gold, as compared to those from an area with very little mineral deposits.
It is also quite dependent on the rate of currency. When the valuing of the currency goes down, this valuable metal will thus become quite expensive. This can be proven by making comparisons between investors from well off countries that have a very high rate and those from countries whose currency has a low rate. To the one from the country with a high currency rate, an ounce of gold will be of lesser value as compared to the one from a country with a lower rate of currency.
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.
To sum it up, the above factors, as well as many others, will cause the price of this valuable metal to change from time to time. This thus proves that each investor may value an ounce of gold differently. What one may consider sufficient enough to run their business, another will term as too little.
Discover ounce of gold will help you achieve your investment goals.
About the Author:
If you are wondering how much is gold an ounce , we recommend that you take a look at our website right away. Read the article on how much is an ounce of gold by clicking on this link ounce of gold
No comments:
Post a Comment