From the age of pirates and cowboys until today, when treasures are put into high-security banks and offshore accounts, gold remains one of the most valuable precious metals. But exactly how valuable is gold? How much is gold worth per ounce and is it really a good investment today?
In a recent study, gold prices per ounce have actually dropped in the past three years, due to the global economic crisis. From a price of $1,900 per ounce in 2011, the price of gold dropped to $1,300 per ounce in April 2013. Non-investors may not think that $600 is not a considerably serious difference, but those who invest their savings in gold cringe at what a 30% drop means for them in the coming years, especially when a more serious financial crisis currently threatens the world.
In the past, gold has proven to be a better investment than money when financial crises happened. In 2012, China holds the top position of countries that produce the most gold at 370 metric tons per year, with the United States in third position at 230 metric tons. Plus, 52% of the world’s gold holdings are in the form of jewelry. With those numbers, it does seem like a good idea to invest in gold, doesn’t it? However, during the global economic crisis of 2008, gold was among those that was seriously affected, with prices falling severely a number of times until it reached a frightening state of $800 per ounce in early 2009.
Now that you know how much is gold, is it a good investment nowadays? With the recent occurrences, it may be safer to stick with cash, non-gold jewelry and other investments that are less likely to put you at risk as much as gold.
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