The Price Of Gold

Having risen from $2063 at the start of 2024 – spot gold prices in the US Dollar set another record high at $2483 per ounce on 17th July 2024 .

This new high came after US gold-backed ETFs expanded and Comex options trading leapt on further speculation that the US Federal Reserve is finally preparing to cut US interest rates.

Between March 2022 and November 2022 GOLD PRICES dropped as low as $1630 .The PRICE of GOLD began to rise again in mid-October 2023 after violence and worsening tensions in the Middle East. The price was at $2005 per Oz on October 27th 2023.

The recent gains in gold prices come as traders switched investing strategies, after nearly two years when rising interest rates helped fuel demand for US dollars and certain kinds of debt. Investors now see a rising chance of interest rate cuts, which has reignited interest in assets such as Gold.

Many private small-time investors are keen to keep some of their assets in gold .  According to Bullion Vault , which operates vaults in London, New York and Zurich there has been a ninefold increase in the number of gold bullion traders in the past five years.

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Why Invest in Gold?

People decide to put their hard-earned money into physical gold for many reasons. In the main it’s to diversify away from other investment markets, to hedge against inflation or as a ‘crisis insurance’ against possible financial instability. 

Central banks around the world hold about 12% of their reserves in gold. The US has the biggest hoard of gold, followed by Germany and the International Monetary Fund. If jewellery is included, India has the largest amount of gold within its national boundaries.

The amount of gold left underground could soon run out. At the end of 2021 the big gold producers calculated their reserves at 52,000 tonnes – or about 12 years’ of production. In reality, it is likely to be more, as new reserves are discovered.