For time immemorial, gold has been revered as one of the most valuable metals. In fact, it is one of the oldest metals to be discovered. Man has utilized it for ages, and has come up with unlimited number of uses. Nowadays, this precious metal has a million uses, one very different from the rest. It has been uses as the factor that determines the level of investment. The reason for this is that it has a stable value as compared to money. However, there are still a factors that affect its price. 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, increases in price 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.
A shortage of it in the mines will mean that there will be less supply in the market. The lesser there is, the higher the price will be. During the period when there is a large supply of this valuable metal, investors will find it to be quite inexpensive and will hold less value for it.
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.
Its demand is not very constant. It keeps fluctuating from one time to the next with the rise in demand for it. During the time when there is high demand, there will be a higher rating on an ounce of this valuable metal. Investors in a situation where there is lesser demand will consider its price to be lesser than the one in a situation where its demand is higher.
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 affects the price in that there are areas that are rich in mineral deposits of this metal, while others have no mineral deposits of it at all. The investors from the rich mineral areas usually acquire it at very low prices and will thus not attach much value to an ounce of gold, as compared to those from an area with very little mineral deposits.
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.
Income of the investor plays a key role in the determination of its price. An investor who earns a lot of money will not consider it to be worth more. The one who earns a little money will find it to be quite valuable.
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.
What may be termed by one investor as a reasonable amount of this valuable metal can be negligible to another. When making an investment in terms of this valuable metal, there will be a variation in the size of investment depending on the above factors, and many more, even though the quantity of gold that was used was the same. This thus shows that 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, increases in price 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.
A shortage of it in the mines will mean that there will be less supply in the market. The lesser there is, the higher the price will be. During the period when there is a large supply of this valuable metal, investors will find it to be quite inexpensive and will hold less value for it.
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.
Its demand is not very constant. It keeps fluctuating from one time to the next with the rise in demand for it. During the time when there is high demand, there will be a higher rating on an ounce of this valuable metal. Investors in a situation where there is lesser demand will consider its price to be lesser than the one in a situation where its demand is higher.
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 affects the price in that there are areas that are rich in mineral deposits of this metal, while others have no mineral deposits of it at all. The investors from the rich mineral areas usually acquire it at very low prices and will thus not attach much value to an ounce of gold, as compared to those from an area with very little mineral deposits.
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.
Income of the investor plays a key role in the determination of its price. An investor who earns a lot of money will not consider it to be worth more. The one who earns a little money will find it to be quite valuable.
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.
What may be termed by one investor as a reasonable amount of this valuable metal can be negligible to another. When making an investment in terms of this valuable metal, there will be a variation in the size of investment depending on the above factors, and many more, even though the quantity of gold that was used was the same. This thus shows that each investor may value an ounce of gold differently.
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