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Showing posts with label Essential Guides. Show all posts
Showing posts with label Essential Guides. Show all posts

Thursday, August 15, 2013

Essential Guides On How Each Investor May Value An Ounce Of Gold Differently With Ease

By Alva Lendrum

Gold is the most precious metal on earth. People even make their wealth estimations in term of country. Due to the uncertainty of the factors that money presents, in terms of devaluation and the like, people have been forced to start making their investments in terms of this precious metal. However, it is not so certain in value, and each investor may value an ounce of gold differently.

Time is a factor that affects all material things. Gold, since it is a valuable metal, the gold spot price increases as time passes. An investor from ten or twenty years ago will term it to be of a very different value from the kind that will be operating in twenty years time.

Its supply also determines the price. When the mines run out of deposits, the supply will not be available to fit its demand in the market. An investor in the situation where there is more supply will price it less.

Price manipulation is another factor that will make the price vary from one investor to the other. There are various cartels that usually control the price of this valuable metal. For investors who are getting it from cartels that have really hiked the prices, an ounce of gold will be quite precious, as compared to one who is used to the free market where no one is in charge of controlling the prices.

When there is a very high demand for it, the supply becomes unable to fulfill the needs of all the consumers. The little metal that is available is thus sold at a very high price. During this period, an investor will view it with such high regard and at a high rate. When there is a low demand for it, the prices go down and investors will view an ounce of gold with a very low regard.

The government will at times interfere with the market and control the prices. It does this mainly by taxation. In economies where the government taxes more on this valuable metal, it is more expensive and thus investors rate it more.

Location is another huge factor affecting it. In areas where it is in plenty, and where proper mining of it is carried out, its price is lower than areas where there is no mining of this valuable metal. Investors from rich mineral deposits areas will thus attach less value to the ounce of gold. On the other hand, the one who comes from an area which it is less will attach more value to the same ounce of gold.

It is also quite dependent on the rate of currency. When the valuing of the currency goes down, this valuable metal will thus become quite expensive. This can be proven by making comparisons between investors from well off countries that have a very high rate and those from countries whose currency has a low rate. To the one from the country with a high currency rate, an ounce of gold will be of lesser value as compared to the one from a country with a lower rate of currency.

Depending on the amount of income that the investor is receiving, they will be able to determine the price of an ounce of this precious metal. Investors who receive quite huge sums of money will be able to afford more this metal, hence to them, an ounce of gold will be worth less. To those who earn very little income, they can afford very small amount of it hence will rate it to be very cheap.

This precious metal is a hedging tool, a storehouse of value, a way to see incredible returns, and it has barter value if currency ever becomes worthless. Investors should therefore be careful when dealing with cartels. Choose reputable ones.

To sum it up, the above factors, as well as many others, will cause the price of this valuable metal to change from time to time. This thus proves that each investor may value an ounce of gold differently. What one may consider sufficient enough to run their business, another will term as too little. Find out how a Gold as an Investment help you attain your retirement goals.

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