Gold is a bright yellow metal, the metal is solid under standard conditions and resistant to most acids. Gold has throughout history been used for coins, in art, industry and jewelry.
Most jewelry is in 14k(karat) meaning a little over half of it is real gold, 18k is approximately 75% gold and 24k is 99.9% gold. 24k can scratch and break easier compared to 22k or 18k. In dentistry, gold has been used for centuries and is still used today to fill cavities. There’s also a small amount of gold in most electronic devices. One of the largest consumers of gold is India next comes China and The United States. The demand for gold is generally bigger among those with a higher income.
The price of gold are determined through trading in gold and derivatives market. Gold prices fluctuates for a number of reasons. One of the factors is the supply and demand for gold, including speculative demand. When the demand for gold exceeds the supply the price rises, when the supply exceeds the demand the price sinks. The price of gold is affected greatly by change in view, and it affects both supply and demand.
Another cause for the gold price is Central Banks. The actions of Central Banks can cause the gold prices to go up and down. Gold prices is closely related to Central Banks through their monetary policy decision on interest rates. If there’s a possibility of a prolong inflation, central banks may raise interest rates which could lower gold prices but that’s not always the case. There has been instances where central banks has raised its interest rates and the gold prices has increased instead of decreasing. This has happened in 2008 and 2011 with the European Central Banks and the same in India, 2011. In the long run gold serves as a hedge against inflation, deflation or currency devaluation. Gold prices can be influenced by different macroeconomic factors such as currency exchange rate, the price of oil, etc.
Even though the gold price fluctuate it is a safe long-term investment, in fact most who buy gold buy it for investments. Gold is a popular investment and people like to protect them self from uncertainty. Gold is respected throughout history and the world today. There are many reasons to invest in gold. If currency lose its value, investors with gold have little to worry about compared to those with money investment in paper currency. It has maintained its value and people see gold as a way to preserve wealth and pass on to next generations.
God price today as of February 20 2020 is $ 1,612.56 USD per oz.