What is the current gold price? How much does gold cost?
Gold may be one of the oldest precious metals around, but it isn’t going anywhere. It’s been used throughout history as a symbol of wealth and status, and it still has many practical uses today (including in electronics, jewelry, and dentistry).
Despite this longstanding use, you may still have questions about the gold price or how much gold costs. Learn more about what determines the price of gold with this comprehensive guide on the gold price and cost of gold today.
Is it time to buy gold?
Gold’s one of those investments that people invest in for its sheer beauty, but it also happens to be a great investment.
Right now, gold prices are holding steady at around $1,300 an ounce and experts predict they could rise as high as $2,500 by 2020. But what you may not know is that whether or not you buy gold depends on your financial goals.
For example, if you’re saving up for retirement and want to protect your assets from inflation over time, then buying gold might make sense.
If you just want something pretty to hang on your wall, though, then maybe it’s best to stick with art. Either way, here are some things you should consider before investing in gold.
Investment experts recommend allocating 10%-15% of your portfolio toward gold and other precious metals like silver. That is, 4%-5% of your portfolio should be in these types of assets each year, adjusting as the market dictates.
This is to help keep pace with inflation and to guard against potential inflationary dangers. Experts also say that you shouldn’t invest more than 5% of your total net worth into precious metals.
In terms of buying gold coins, they typically have a lower premium over spot price than bullion bars do. In addition, they’re often easier to liquidate because they are recognized by governments worldwide and can be sold at any coin shop or pawnshop around town.
However, their higher premiums mean that you’ll take on more risk if you decide to sell them before their value rises.
If you want to buy physical gold for an investment portfolio, experts recommend storing it in a vault at home or with your bank not under your mattress.
Storing it in your home isn’t secure enough because there could be an emergency such as a fire that would require you to leave quickly without taking time to grab your stash.
For more information on how to invest in gold and other precious metals, contact us today. We can help you determine whether or not now is a good time to buy and help answer any questions you may have about investing in precious metals.
It’s also important to remember that while many people think of gold as a safe haven, it doesn’t protect against inflation. Instead of an inflation-resistant asset like gold, buy assets that tend to hold their value when inflation pressures rise (e.g. real estate and stocks from companies focused on consumers).
Other investments in precious metals are Exchange Traded Funds (ETFs) and mutual funds. Buying physical gold is just one way to invest in precious metals.
An ETF (exchange-traded fund) is a good choice for those who want to invest but don’t want to take on the storage burden of the metal, while a mutual fund has broader exposure than an ETF.
Both of these investments can be bought through your stockbroker or financial advisor, or through self-directed accounts at brokerage firms like Fidelity or TD Ameritrade.
Have you ever wondered how to buy gold? If so, give us a call and we’ll help you figure it out! We can tell you all about what it takes to invest in gold and help you get started on your journey.
What drives the price of gold?
This can be a tough question to answer, but there are a few factors that come into play. The global economy is one of them.
When times are good, people tend to buy more jewelry, coins, and other items made with gold. That’s when prices go up.
They also increase during political or economic uncertainty which often occurs during periods of war or if another nation has an unstable government.
This increases the demand for gold. Another factor in how much it costs to buy gold comes down to where you live.
Gold is traded on several exchanges around the world, each of which sets its own price based on supply and demand within its region. Prices vary widely depending on where you buy your gold.
For example, you might pay $1,500 per ounce in New York City while paying $1,300 per ounce in San Francisco. Likewise, different types of gold cost different amounts.
To give an example, 24-karat gold bullion generally carries a higher price than 22-karat gold bullion because it has fewer impurities.
Finally, there are many ways to invest in gold. You can buy bullion bars or coins at banks and coin shops; you can purchase shares of mining companies, or you can trade futures contracts through commodity exchanges like Comex (the most popular exchange).
Choosing how to buy gold may make the purchase more expensive than you thought. The kind of gold you choose to buy (physical vs. virtual) can affect how much you’ll pay, so be sure to inquire about what fees might apply and whether you may be eligible for any discounts.
If you want to invest in gold ETFs or mutual funds, make sure they’re not charging too much in management fees. And finally, if you want to trade futures contracts, know that they carry high leverage so keep your losses small.
There are plenty of other factors that could influence how much it costs to buy gold. With all these variables, it can be hard to pin down exactly what something should cost but understanding these basic principles will help get you started.
Calculating The Cost Of Gold
There are many variables when it comes to buying gold. Gold bullion such as coins or bars can have a variety of finishes and purity, which will alter their value.
Other factors such as tax laws or currency exchange rates also play a part in determining how much an ounce of gold is worth.
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Finally, there’s one more thing you should consider before you decide to buy: just how easy it would be to sell your purchase later on.
If you plan to keep your gold for investment purposes, that might not matter so much; but if you want to resell it at some point down the line, then knowing its resale value could help determine whether or not now is a good time to buy.
For example, if you buy gold today and prices drop shortly after, you may struggle to find someone willing to pay what you paid for it.
In contrast, when prices are rising rapidly (as they did from 2009 through 2011), having bought early can mean big profits down the road but again, it all depends on where things stand by the time you come to sell.
Making prices more tricky, the prices of gold are set by supply and demand, currency exchange rates, and whether it’s easy to find and mine for more supplies of gold.
It also depends on how much gold has been mined throughout history. Gold mining can be a long process that takes years before any profits are made.
If a lot of gold has already been mined, then its value will be higher because there won’t be as much available in future years.
It’s worth noting that owning physical gold carries storage costs, too and those costs can vary greatly depending on where you buy it from and how you plan to store it.
For example, if you’re planning to store your gold in a safe deposit box at a bank or other financial institution, then any applicable fees will be factored into your purchase price; but if you want to keep your gold at home in a secure location of your own choosing (such as a safe), then make sure you have room for it before making any purchases.
Finally, remember that when you decide to sell your gold there may be additional costs involved.
When deciding whether to pay a fee to have your gold traded in or opt for a cash-for-gold deal without additional charges, ensure that these expenses are not just one more thing you can’t afford to spare and factor them into your budget to prevent shock later on.
How To Calculate The Cost Of Gold: In order to find the most up-to-date and accurate market rates, I would recommend you first browse today’s spot prices for gold bullion.
Typically, spot prices can be found online from various gold dealers. Once you’ve determined what each troy ounce of gold is currently selling for, simply multiply that number by 24.15 to get its value in U.S. dollars (the weight of an ounce is roughly equivalent to 25 grams).
If you want to calculate how much gold per gram, divide its weight in ounces by 31.1 (the number of grams per troy ounce).
For example, if today’s spot price for gold is $1,200 per troy ounce, which is equivalent to $40 per gram.
$1,200 x 24.15 kilograms = $29,960
that’s $29,960 per kilogram and there are 31.1 of them in a metric ton, so it’s 958.08 euros per 1 gram. This would be called a dollars per gram conversion.
You can also use an online currency converter like OANDA to see what your equivalent dollar amounts are in your currency (i.e. if you’re not sure what conversion rate to use, you can find gold prices here).
Buying Gold Bars Vs. Coins
Gold coins come in a variety of sizes and weights, and each coin has a different value. In order to determine how much your coinage is worth, you’ll need to know three main details: purity, weight, and rarity.
Coins that are rare or unique will always be worth more than ones that are common or easily obtainable. For example, if you have an 1881 $20 Liberty Head Double Eagle coin (which has a face value of $20), it’s likely worth far more than any other version from that year.
If you want to sell your coins for cash, it’s recommended that you find out what they’re actually worth before going through with any transaction you don’t want to get ripped off.
It’s also good practice to verify whether or not your local scrap yard accepts specific types of gold bars or coins. You can usually call ahead to make sure they accept what you’re trying to recycle.
Each country has its own currency and monetary system, which means that its people pay for goods and services using their own money. The US dollar is a type of fiat currency (money with no intrinsic value), so it’s not backed by any physical commodity such as gold or silver.
Instead, dollars are printed by the Federal Reserve Bank and backed by trust in our government to honor them as legal tender.
For example, if you have $100 in your wallet, you can use it to buy food at a grocery store because everyone knows that you can exchange it for $100 worth of groceries at any time.
You can also go to an ATM machine and withdraw $100 cash from your bank account because there’s a record of your balance somewhere within the bank’s computer network.
Even though paper currencies aren’t backed by anything tangible, they remain valuable because they represent what we call fiat power. This essentially means that citizens believe they have value and will continue to do so into perpetuity.
So long as people agree on what something is worth, it retains its purchasing power which makes fiat currencies vary different from commodities like gold or silver.
Those commodities derive their purchasing power from supply and demand: If more people want to buy than sell a certain item, then prices increase; conversely, if more people want to sell than buy an item, then prices decrease. This can be tricky when dealing with countries that have multiple currencies.
Where To Buy Gold Jewelry Or Investment Pieces
Before you buy gold jewelry, you should know that prices can fluctuate at any time. Gold and silver values are constantly changing in response to supply and demand, so it’s crucial to have a reputable dealer whose quoted prices can be trusted.
You can also buy precious metals via a physical purchase (at a coin shop or pawn shop), or if you have large investments, over-the-counter through a broker. It’s always wise to check out your options first before making a purchase.
Does size matter to me? Is weight an issue for me, or am I more concerned about the overall value per ounce/gram? If size matters to you, then don’t forget to factor in how big each piece will be and how heavy it might feel on your wrist or around your neck. Is color important to me? This one’s pretty self-explanatory.
Color doesn’t really affect value, but it could affect your style preferences. Some people love yellow gold while others prefer white or rose gold. Can I afford it? The most important question of all: Can you afford to spend money on something like a piece of jewelry right now? It’s easy to get caught up in wanting something shiny and new but remember that these things aren’t free.
Make sure you can afford them by taking into account not only their retail price but also shipping costs, taxes, and anything else that may apply (like financing).
Also, consider how long you’ll really wear them; if it’s just going to be for a few months until something better comes along, maybe reconsider.
Will I actually wear them often enough? This is a very important question to ask yourself. You want to invest in pieces that you’ll enjoy wearing every day.
If you won’t wear them regularly, then why bother? Many experts recommend having no more than 20% of your total wardrobe made up of special occasion items, which includes everything from fancy dresses and blazers to cocktail rings and other jewelry.
Investing in those kinds of items makes sense because they’re expensive and thus tend to stay nice longer due to less frequent use (i.e., fewer chances for stains or scratches).
But keep in mind that investing in everyday jewelry is different you need pieces that are durable enough for daily use but still attractive enough for special occasions too.
Conclusion: Is now a good time to buy gold jewelry or coins?
It’s generally a good idea to buy precious metals when they’re on sale. As you can see in our chart, prices for gold have been declining since December 2014.
If you want to save money, it’s likely a better time to buy now than it was a year ago. However, if your intention is just to invest in something that has lasting value and not look at short-term fluctuations in price, then buying based on its intrinsic worth might be better.
There are plenty of reasons why people choose to buy gold jewelry or coins (and many more why they don’t). You should do what works best for you.
But keep in mind that there are times when it makes sense to wait and others when it doesn’t. The key is knowing how long to hold out before pulling the trigger.
So check back often and we’ll keep you up-to-date with breaking news, expert advice, market analysis, and more.
Whether you’re interested in investing in gold bullion for retirement savings or as an alternative hedge against inflation, now may be a great time to pick up some new pieces of fine art.
Although prices tend to fluctuate throughout the year, overall they’ve been decreasing since mid-2014 meaning you’re getting more bang for your buck right now.
On top of that, low-interest rates mean that CDs and other similar instruments aren’t providing as much return as they used to.
Buy some classic American coins like $50 Gold Buffalo Coins, which carry face values equivalent to their melt values. They’re great conversation starters and an easy way to demonstrate your dedication to sound financial practices.
Although make sure you take proper care during cleaning so none gets worn off by accident. You can also buy antique jewelry with real value beyond its aesthetic appeal.
The best part about buying gold jewelry or coins at lower prices is that you can sell them later when prices rise again (or give them away if you don’t want to hold onto them).