Today, gold is sought after, not just for investment purposes and to make jewelry, but it is also used in the manufacturing of certain electronic and medical devices. Gold (as of March 2021) was over $1,700 per ounce, and while down more than $300 from September 2020, still up considerably from levels under $100 since 50 years ago. What factors drive the price of this precious metal higher over time?Source There's need to rush into gold investments today, because it's durable, long lasting and can be used for other purposes. Greetings from @salvadornkpara
The Role of Demand and Supply in Determining the Price of Gold
The rise and fall in price of any commodity is determined by the laws of demand and supply. In the Gold Market, demand and supply plays a significant role to determine the spot price. Accordingly, of buyers are trying to buy gold, sellers may lift prices causing buyers to bid higher. On the other hand, of sellers are overwhelming buyers, those looking to acquire gold may bid lower, thus driving prices down in the process. The current price of gold is known as Spot Gold Price. Spot Gold Price is also determined by the nearest price of gold in the previous or front month or two out on the time horizon.Source
Factors that Affects Spot Gold Price
The factors affecting Spot Gold Price are numerous. This is because
- gold is not predominantly for investment seek alone. Gold is used in industry and jewelry making. When there's rise in the demand of gold in these sectors, the price will rise and when there's low demand, the price will fall.
- interest rate is also a factor that affects Spot Gold Price. On a daily basis the global exchange rate of currencies fluctuates.
- the state of the stock market. Gold may see increased buying from a stock market collapse or bear market. Bear markets are seasons when wise investors increase the quantities of their gold stocks and stack them until the market revives and bull when the market price is at its peak.
- gold price is determined by the dollar.Source
Benefits of Investing in Gold
Investing in gold can be beneficial to both long term and short term goals. For those looking for investment yield, investing in gold can be a good way to increase wealth over time. The benefit of investing in gold is that prices do not fluctuate as much as other investments, and this allows investors to profit when the market fluctuates and prices are unpredictable. This is unlike other investments, such as stocks, bonds, or mutual funds, where losses and gains can vary depending on the government policies and economic conditions of the country. The benefit of investing in gold is also that gold itself does not lose value, so holding onto gold is a good investment regardless of the economy.
https://worldfinancialreview.com/is-investing-in-gold-still-a-good-idea-in-2021/
Based on the foregoing, one can make huge benefits from gold investments. This is because almost every government in the world permits and accepts gold investors in their country. Unlike the cryptocurrencies that hasn't been globally accepted by most nations. Even the United States, most states are still finding it difficult to accept cryptocurrencies as a legal tender in their state. Apart from Miami they've adopted cryptocurrency as a legal tender, New York City with the election of Eric Adams as Mayor-elect, there's visible hope for crypto investors in the city. In February 2021, the Nigerian government placed an embargo on the acceptance of cryptocurrencies in commercial banks, but investments in gold is accepted by the government.
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Today's value of Gold Price per ounce is at $1,832.00
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Today's value of Gold Price per gram is at $58.90
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Today's value of Gold Price per kilogram is at $58,898.80
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The highest Gold price ever per oz was achieved in August 2020 during the hotness of the Covid-19 Pandemic.
Looking at today's drop in price of gold gives potential investors the opportunity to quickly take advantage of the bear market today as it has the potentials of rising to its peak before the end of December 31, 2021. See you at the top on the gold investment world. From @salvadornkpara
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