Over the previous year gold’s value has risen 13.6%, showing it is still one of the most favoured investment choices during inflation. You can look at this in two ways. Optimism would have us see it as a sign of recovery, getting out of the recession.
If you see the glass as half full, buying gold bullion coins coins now will be cheaper than when their value rises too high. Selling them in the future will give you a profit on your investment. On the other hand, if you own any gold bullion coins now would be a good time to sell.
Or, because gold is often used as a wealth protector in times of economic downturn, its higher value could be seen to indicate that people are moving into gold in case currencies fall. Evidence of this could be that the US dollar has been depreciating in value which does not signal recovery.
The higher gold prices has been caused because investors and institutions are not certain which way the economy is going. Traders are seeing safety in gold and governments are protecting themselves with higher gold reserves.
There is no clear answer as to whether the global economy is going to improve or decline next, inflation rates are also being questioned. Gold is being hoarded by big traders.
Gold reached an all-time record of $1,032 an ounce in March 2008. March 2009 was the last time that the price reached $1000 per ounce.
Gold is sold in troy ounces. One troy ounce equals 31.1035 grams or 480 grains. Avoirdupois ounces are used as common measurement in the UK and US, one troy ounce is 1.09711 avoirdupois ounces.
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