Many people predict that gold prices will continue to rise, as it has been doing throughout the ages, and to know more about this you need to constantly know how much for an ounce of gold. Over the last years, the price of gold has been ascending at a faster pace and many, who were wondering whether they should invest in this precious yellow metal, are finally starting to do so. On the other hand, there are many others who are predicting doom for gold. It is near impossible to assess when the price of gold is going to reach its ultimate high or peak and start falling.
Inflation and Gold Prices
However, it is possible to consider certain important aspects regarding why the price of gold rises when considering how much is 1 ounce of gold. One major factor that affects the price of gold is inflation. The Federal Reserve starts printing more money and when the supply of currency increases, its value naturally reduces. The price is given in dollars and hence when the dollar gets devalued, the price takes an upward trend.
The economic situation in all parts of the world can also affect how much is 1 ounce of gold, when many countries reel under the burden of debt. Due to the financial instability of many countries, people start getting doubts about the value of currencies and start a frantic rush for investing in gold, which sends the demand along with the prices sky-rocketing.
Intrinsic Value of Gold
Many experts opine that the increasing price of gold does not reflect its true value, and is only a bubble which is going to burst any time. They claim this because, according to them, gold is not used in any industrial applications and therefore does not have any economic value. However, this is not entirely true, as this metal gains its value more from people’s perception than from its industrial uses. It is a non corroding metal and is very popular in the electronics field. Secondly, gold is not like other commodities and does not depend on its industrial value or use to get the prestigious position it has always been in.
Many civilizations have destroyed themselves in their pursuit of gold, and the simple fact is that people find this precious metal too fascinating and will keep investing in it, as they know its intrinsic value. During times of economic stress, people will naturally turn to find out how much for an ounce of gold and start investing in it, no matter what the price.