Gold Price - Gold Value

Like other precious metals, gold is measured in troy weight and grams. When alloyed with other metals, the term carat or karat is used to show the purity of gold present, with 24 carat gold is pure and lower ratings proportionally less. Purity and gold bar or coin can also be expressed as a decimal number ranging from 0 to 1, is known as the clarity Milli, such as 0.995 are very clear.

The price of gold is determined by trading in gold and derivatives markets, but a procedure known as the setting of gold in London, originating in September 1919, offers day-to-day reference price in the industry. The afternoon fixing was introduced in 1968 at a price when U.S. markets are open.

A Swiss-cast 1 kg gold bar.

Historically, gold coins were widely used as currency, paper money was introduced, it typically was a receipt to exchange a gold coin or bullion. The monetary system known as the gold standard, a certain weight of gold was given the name of the unit of currency. For a long time, the United States government, the value of the U.S. dollar, so troy ounce is equal to $ 20.67 ($ 664.56/kg), but in 1934 the dollar was devalued to $ 35.00 per ounce ($ 1,125.27 / kg). In 1961, it will be difficult to maintain prices, and agreed to manipulate the market to prevent further currency devaluation against increased gold demand, which pool of U.S. and European banks.

On 17 March 1968, the economic situation has caused the collapse of the gold pool, and two price system was established, where gold is still used to settle international accounts at the old $ 35.00 per troy ounce ($ 1.13 / g) but the price of gold on the private market was allowed to move; This two-tier pricing system was abandoned in 1975 when the price of gold was left to find a market level. Central banks still hold historical gold reserves as a store of value, although the levels are generally declining. The largest gold deposits in the world, the U.S. Federal Reserve Bank of New York, which is 3% of the gold ever mined, as both laden U.S. Bullion deposit Fort Knox. In 2005, the World Gold Council estimated total global gold supply 3859 tonnes and demand to be 3,754 tonnes, which is the excess of 105 tonnes.



Sometime around 1970, the price began to trend significantly increased, and by 1968 the price of gold varies widely, from a high of $ 850/oz ($ 27.300 / kg) 21 Ιανουαρίου 1980 to a low of $ 252.90/oz ($ 8,131 / kg) on ​​21 June 1999 (London Fixing Gold). 1999-2001 period marked the "Brown Bottom" after a 20-year bear market. Prices increased rapidly from 1991, but the 1980 high was not exceeded until January 3, 2008, when the new set up $ 865.35 per ounce. Another record price was recorded on 17 March 2008 to $ 1023.50/oz ($ 32,900 / kg).

At the end of 2009, the gold market has seen a new momentum upwards due to increased demand and a weakening U.S. dollar. On 2 December 2009, Gold passed the important barrier of U.S. $ 1,200 per ounce to close at $ 1215th Gold further rallied hitting new highs in May 2010 after the European Union debt crisis prompted further purchase of gold as a safe asset . On March 1, 2011, gold hit a new all-time record high of $ 1432.57, based on investor concerns regarding ongoing unrest in North Africa and the Middle East.

Since April 2001 the gold price has more than five-fold in value against the U.S. dollar, hitting a new all-time high $ 1,913.50 August 23, 2011, causing speculation that this long secular bear market has ended and a bull market has returned.

Source: Wikipedia