About 20 years ago an ounce of gold was worth 500 AUD. Today the price of gold is about AUD 2,447.85. That’s an incredible 20% jump. The problem is that few Australians should have some gold in their investment portfolios. There are fewer commodities that can claim to have made such gains in the last 20 decades.
You can understand why gold has been such a sought-after commodity. Nations have gone to battle over it, and it has been used as a measure of wealth and a status symbol by many nations. For more than 6,000 years, this precious metal has been the backbone of wealth and financial systems.
- Unlike other valuables, the price of gold does not drop during times of disaster or financial meltdown.
- Even during the worst economic recessions, gold retains its value. This means that those who have it in their investment portfolios or stored away aren’t severely affected.
- Gold still retains its power even during times of deflation.
- Because it is a rare metal, it does not lose its value. In fact, the price of gold has been rising because mines have been talking about reaching peak gold, which means that gold will eventually be depleted. So, the gold that is already above ground is likely to gain more value.
- Gold is very liquid, you can find gold buyers Australia whenever you need to sell.
- Gold can be used as a currency in most countries. If you carried your gold anywhere in the world you could convert it to easily convert it to cash if you need to.
Type of gold
Gold comes in many different forms. You could buy gold coins, bars or jewellery. Knowing the type of gold will help you find gold buyers Australia has that are interested in the type of gold you have to sell.
The price that you will get from a buyer will depend on the purity of your gold. The purity of gold is expressed in karats. At 100% gold is very soft and not as durable which is why it is mixed with other metals to make it harder. The purest gold is 24 Karats. This means that the gold has 24 parts of pure gold. You also get 22 karats which means 22 parts are pure gold and 2 parts are made up of other metal alloys. Gold bullion is made up of the highest purity, 18 karats is made up of 18 parts pure gold and 4 parts other metals, and so on. Most jewellery is made up of 18 karats or 14 karats.
The price of gold is important when you want to sell your gold. Fortunately, the price is standardized.
How is the price of gold set?
Like many other investment assets, the price of gold is affected by supply and demand. However, the price is set by a special group made up of several banks, and an oversight committee who come up with calculations based on supply and demand, futures derivative markets, and they establish what the spot price should be. This price is used as the global standard. So, when selling gold, it is important to know what the spot price of gold is on a particular day.
If you have gold, there are several ways you can get cash for it. You can sell it to jewellery dealers, bullion dealers, and scrap gold buyers. Check the purity of your gold, in the case of jewellery, look for hallmarks. Weigh it and get a general idea of what the price of your gold should be.