Gold is a precious metal, a luxury commodity and an investment object. If you want to invest your money, there are several options with gold. Although you could invest in golden jewelry with precious stones, but as an investment object that is not recommended. Of course you can wear gold jewelry with diamonds, emeralds or rubies, if you like that. However, this jewelry has no investment value. It looks quite different with gold bars or gold ira. For gold bars you pay as an investor the current price of gold for an ounce. The price of gold per ounce may rise or fall over time. A troy ounce of gold refers to the percentage of precious metal and is just over 31 grams. The banks offer gold bars with different weights. The advantage of the system is that you pay the pure gold price. If you want to invest in gold, you should track the current price and then buy when the price is just low. The investment in gold is by far not as volatile as in equities. The price of gold is changing, but the trend is more stable than that of equities.
As an alternative to gold bars, you can invest in gold coins. The banks offer various coins, for example the Krugerrands. A Krugerrand corresponds to a troy ounce of gold. Gold coins are not a means of payment. They are beautiful to look at, but as investment objects they have a lower value than gold bars.
GOLD AS A STABLE INVESTMENT
Gold is a relatively stable investment. While the price of equities changes dramatically in times of crisis, gold prices remain relatively constant. Crucial is the price you have to pay for a troy ounce of gold. Golden jewelery often has great visual or emotional value, but the gold content is small depending on the variety (for example, 333er, 585er or 750er gold). You often get a gold ring for less than 100 Euros. However, if you want to invest in a troy ounce of gold, you have to pay more than 1,000 euros. How volatile the price of gold is, the following development should show:
- Gold prizes in the year 2000: about 300 US dollars
- Gold price in 2010: approximately $ 1,250
- Gold price in 2017: about $ 1,500
For shareholders it is just as interesting for investors to know which factors influence the price development. For equities, the global political situation and the economic situation of a company have an effect on the share price. Gold prices are influenced by world politics as well as investor behavior. If many investors invest in gold, the price rises. In an economic crisis, when investors sell their gold, the price of gold plummets. A global political crisis can therefore affect the gold price.