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.

Gold as Investment

Many holders of gold store it in form of bullion coins or bars as a Hedge against inflation or other economic interference. However, some economists do not believe gold serves as a Hedge against inflation or currency depreciation.

ISO 4217 currency code of gold is XAU.

Modern bullion coins for investment or collector purposes do not require good mechanical wear properties, they are typically fine gold at 24k, although the American Gold Eagle and British gold sovereign continue to be printed in 22k metal in historical tradition, and South Africa Krugerand, was first released in 1967, also 22k. The special issue in Canada Gold Maple Leaf coin contains the highest purity gold of any bullion coin, at 99.999% or 0.99999, while the popular issue Canadian Gold Maple Leaf coin has a purity of 99.99%.

Several other 99.99% pure gold coins. In 2006, the United States Mint began production of the American Buffalo gold bullion coin with a purity of 99.99%. Australian Gold Kangaroos was first coined in 1986 as the Australian Gold Nugget but changed the reverse design in 1989. Among other famous modern coin Austria Vienna Philharmonic bullion coin and the Chinese Gold Panda.

Gold Price History 'till Jan 2012

Source: Wikipedia

Gold As Monetery Exchange - Price History

Gold has been widely used around the world as a vehicle for monetary exchange, either by issuance and recognition of gold coins or the amount of empty iron, gold or via conversion of paper instruments by establishing gold standards in which the total value of issued money is represented in a store of gold proposal.

Gold Standard Bar

The first gold coins of the Greek age hit in Lydia in 700 BC when approached for years. Talents of gold coins that are used during the period of Greek history prior to and during the life of Homer weighed between 8.42 and 8.75 grams. From previous preference in the use of silver, the European economy back erect minting gold as currency for centuries of the thirteenth and fourteenth centuries.

However, production has not grown in relation to the world economy. Today, gold mining output declined. With the sharp growth in the 20th century, and increasing foreign exchange, the world gold trade market recommendations and they have become a small part of the whole market and currency exchange rate fixed to gold is no longer maintained.

At the beginning of World War I fighting countries move to fractional gold standard, inflate their currencies to finance the war effort. After World War II gold replaced by a system of currency conversions follow the Bretton Woods system. Konvertibilitas gold standard and direct from the currency to gold have been abandoned by world governments, replaced by fiat currency to replace them. Switzerland was the last country to tie the money currency with gold, but supported 40% of its value until the Swiss joined the International Monetary Fund in 1999.