You need to be aware of the price of 1 ounce of gold in order to make an informed purchase or sale. You should first of all consider the kind of investment you wish to make in gold, as there are various methods of investment in this precious metal. Many people prefer to invest in gold jewelry, but one must remember that you cannot trade it for the price that you bought it, as the selling price is quite different from what you paid for it.
Of course, you stand to gain, in case the price for an ounce of gold appreciated. But if the jewelry piece is a designer one with a lot of intricate work done on it, then you end up paying for the art work and get less gold value, and hence a lot of your investment will be written off while selling it. Additionally, there are other alloys present n the jewelry and you will not get any value for it. It is wise to consider purchasing hallmarked gold jewelry, after ascertaining the price for an ounce of gold, as you will be getting a higher purity of gold in the piece.
Buying Lower Carat Jewelry
Look at the purity of the gold jewelry piece by assessing the carat. This is the purity of the gold per 24 parts or per 1000 parts. When the term 1000 is used, it indicates the fineness of the gold sample in question. Hence, if a jewelry piece is described as 18 carat gold, then it means that the jewelry has a purity of 18/24, which means that it has 75% fineness. There is a certain standard of fineness or carats to be present in a sample in order that it can be termed as gold, and this could vary from country to country. In England, for instance, 9k is accepted as gold whereas in the US 10k is the minimum level for purity. It is better to invest in a lower carat of gold jewelry, considering the price for ounce of gold, as this is affordable and you can also have a range of colors from yellow to pink and even red, according to the alloy used. This also makes the jewelry sturdier and it does not scratch easily.
Investing in Paper Gold
Due to the present price of 1 ounce of gold, it makes sense to invest in bars or coins of gold, which can give you a better value and return on your investment. You can also go in for paper gold in the form of ETFs or Exchange Traded funds. The companies buy the physical gold in the spot market and it is very easy to sell this kind of paper gold, whenever you need the liquidity.