Among all the precious metals, gold is the most popular and hence the oft-asked question is how much is a ounce of gold worth. The value of currencies can fall, but the value of gold has always been on a steady rise throughout the ages. It makes sense to invest in gold, as this can be a hedge against any kind of financial crisis.
Factors affecting Gold Prices
After knowing how much is 1 ounce of gold worth, it is important to analyze the market in terms of the economic indicators in order to know when and how to invest in gold. Factors such as inflation, interest rates, the GDP growth rate of the nation and petroleum prices could have an impact on the price of gold. The supply vs. demand position of gold should also be considered. Gold involves a lot of private ownership and hence this brings about the volatility in the prices, as it is subject to sudden changes because of the liquidity that it offers.
Gold Stocks Investment
During times of economic difficulties, such as a depression, many investors prefer to place their money safely in the form of gold assets, rather than keep it as currency, which might get devalued. There is a difference between owning physical gold and stocks in gold. Stocks are generally considered as given more return on investment that is they provide you the anticipated increase in prices as well as dividends. It is a good idea to invest in gold stocks after ascertaining how much is 1 ounce of gold worth, as the appreciation is usually good in a stable political environment. Thus, the type of investment that you wish to make would require a lot of analyses.
It would also be beneficial to the investor to analyze the charts which provide the history and trend of how much is a ounce of gold worth with the prices down the years and months. Many details like moving averages, market trends are provided in order to make a rough calculation or speculation regarding how its value in the future.
Apart from purchasing coins and bars, you can invest in Exchange traded products which are in the form of ETNs, ETFs and CEFs. These can be bought in the share market. This can be a good alternative of investing in gold without having to store the physical bars. However, you must verify that the company holds enough gold to benefit the investor; otherwise, the venture could turn risky. You may also have to pay a small commission for this, due to the storage and insurance charges incurred by the company.