The price of gold is always a hot topic. It’s a precious metal that
is not only aesthetically desirable, but monetarily valuable–especially
in recent years. But is it best to keep it stored away or to invest it?
And how has it performed domestically and globally? Learn the facts
about the gold market: There are 33 tons of gold in the United States, but only 15 tons of
that has been found. That leaves 18 tons of undiscovered gold waiting to
be mined in this country alone.
The demand for gold in China has risen from 200 tonnes in 2001 to over
600 tonnes in 2010. The current demand is about 200 tonnes more than
China has available. In contrast, the demand for gold jewelry in the US
has fallen, due to the economy.
On a global scale, the demand for gold jewelry has risen 34% year on
year, while the demand for investment has fallen 37%. The current volume
demand is 17% below what it was in Q2 2010, but that doesn’t mean it’s
negligible–current demand of gold jewelry is 442 tonnes, while demand
for raw gold is more than double that at 920 tonnes.
Recycled gold has accounted for about 35% of the world market between Q4
2005 and Q3 2010–proof that passing on that unwanted gold could do good
things for the overall supply.
Fully half of the worldwide demand for gold is accounted for by three
countries: Turkey, India, and China. India represents 38% of the
consumer demand growth in recent years, while China accounts for ¼ of
it. Together they are 52% of the end-user investment globally.
In 2011, the price of gold reached $1,541.00 per ounce–in some cases its
value superseded that of the consumer price index. If the US dollar
were to crash, experts predict the price of gold would skyrocket, as it
would be considered a stable investment. However, if gold took a value
hit, the US dollar and the NASDAQ would likely rise.
If you’re looking to invest in gold, remember that buying gold bars is
nearly always preferred over gold coins, and that the larger the gold
bar, the lower the cost by weight.
The United States has the highest percent of global reserves, with
75%–8,133 tonnes. China, with its huge demand, has just 1.6% or 1,054
tonnes of gold.
Since gold has come in quarter-on-quarter better than any other
asset, its future looks bright, and experts believe it will rise to
about $2,000 per ounce in the coming years.
