Gold Prices

It wasn't until 1975 that Americans were able to own an unlimited amount of gold. After the metal became de-regulated, gold traded at roughly $300 to $450 dollars per ounce from 1982 to 2002. Since 2002, the price of gold has been more volatile. Below are factors which have the greatest effects on volatile gold prices.

Rise in Gold Prices

Rises in gold prices historically match declines elsewhere. For instance, gold traded for up to $700 an ounce during the financial crisis beginning in 2008. Gains in gold prices are almost certain when confidence in the dollar has decreased. Similarly, when the government over-prints money and causes a currency crash, gold prices will increase in response.

Drop in Gold Prices

Bullish markets and thriving economies are bad for gold prices. Indeed, a strong economy tends to draw in more speculative buyers, creating a large buying market and a decrease in demand. Moreover, gold price drops happen largely as a result of unforseen circumstances. For instance, rogue traders managed to drive gold prices down for part of 2011.
Gold prices are driven by a number of factors often too difficult to predict beforehand. Timing of spikes and declines in gold prices are anyone's guess, so plan accordingly.

5 Reasons George Soros is Wrong to Sell Gold Now

If you follow gold, you have probably heard of George Soros. Not only is he a billionaire, Soros Fund Management is one of the biggest gold traders around. And you may have heard that in February, 2013 the crazy billionaire sold off over half his shares in the gold EFT, Kinross Gold Corp and Freeport-McMoran. There are many reasons that, as a gold investor, you should not do the same.

Reason #1: He’s Done it Before, and He’ll Do it Again

Soros Sells His Gold

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Maybe Soros is picky. Maybe he is nervous. Or maybe he just has a thing against gold. However, the 2013 purge of gold shares isn’t the first time the billionaire has played this trick. In 2011, he sold off about $800 million worth of gold, gold-related shares and investments.

Reason #2: Gold Prices Fluctuate

Gold Prices Fluctuate

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Let’s be honest, the price that Soros sold his stocks at is a dipping price. Since he sold, the price has started rising again. In fact, many predict that the price will continue to rise. There is a trick to buying and selling gold. You don’t want to sell at the lowest price. Don’t get scared just because you see a dip in the market.

Reason #3: There’s a Reason it’s Called the Gold Standard

The Gold Standard

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Gold has been around for a really long time. Much longer than our paper money, our stock market, or even our current society. So think about it. Do you really, truly think that gold is going anywhere? Not only has this precious metal been used for centuries as currency, it is also used in medical equipment, scientific experiments, artistic works, and more. Companies may come and go; stocks may rise and fall, but gold… well, gold is forever.

Reason #4: It’s Gaining a Global Market

Global Gold Market

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In the United States, there may be less demand for gold jewelry. However, this does not mean that there is less demand throughout the world for gold in general. Other countries are clamoring for jewelry-quality gold. On top of that, there is gold that is used in a variety of other products. Remember, gold is not a local market, it is a world-wide commodity.

Reason #5: Blindly Following Anyone in the Stock Market Game is a Bad Idea

Investment Choices

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Assuming you don’t have millions of dollars to throw around, you probably don’t have the kind of money to make a crappy decision on the stock market and come out unscathed. To be honest, blindly following anyone, even someone who is supposed to be a ‘guru’ in the stock market, is simply stupid. Instead, weigh your options, talk to your financial advisors, and make a well-informed decision. Soros sold his stock to make a quick buck. If you are looking to make a good profit from your gold investment, do so smartly, not by following Soros.

When you invest in gold, you are making a great long-term investment. It is important that you don’t get scared out of the market simply because someone with a prominent name decides they want to sell off some of their shares.

Is the Gold Bull Market Over?

Most experts speculate that the gold bull market will continue through 2013. Some, however, disagree with this perspective. Comparing their arguments should help you decide whether you think now is a great time to invest in gold.

Bear Market: Growth in the US Economy Means Falling Gold Prices

Gold Market

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Some market speculators believe that gold prices will fall as the US economy stabilizes. US economic growth will mean that more investors around the world want to buy USD instead of gold. This will drive up the value of US currency while causing the value of gold to fall slightly.

Bull Market Response: The World Economy Suggests Higher Gold Prices

Gold Bull Market

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Yes, the US economy will likely grow somewhat in 2013, but that growth will come at a slow pace that will not excite investors around the world. Unemployment remains high; the government cannot take control of its debt; and wages have not risen to match inflation. All of this spells bad news for USD.

It’s also important to note that the price of gold doesn’t rely on the US economy alone. Half of the world is stuck struggling through a recession. The rest is stuck in economic depression. When seen from a global perspective, investors simply cannot put as much faith in currency as they can in gold.

Bear Market: As Interest Rates Rise, Gold’s Value Will Fall

Gold Bear Market

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During the 1980s, the price of gold fell as interest rates began to climb. Assuming that the Fed will begin to raise interest rates as the US economy improves and needs less assistance, the price of gold will fall during 2013. As the value of gold begins to slip, investors will likely panic and sell it at lower rates. This will lead to a steady decline in value.

Bull Market Response: Gold Maintains Value in all Economic Conditions

Gold Maintains Value

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Yes, there is some chance that higher interest rates could mean that the value of gold falls somewhat. This, however, is based on pure speculation. There simply isn’t enough historical evidence to support such a conclusion. It’s also important to look at the data from the 1980s. While one can find a general correlation between rising interest rates and falling gold prices, the chart is inconsistent. In some years, interest rates and gold prices were equally high.

The fact of the matter is that gold maintains value in all economic conditions. Buying gold is always the safe bet. Even if the value were to fall slightly in 2013, it would eventually rise again. What’s important is for investors to recognize the difference between short-term profits and long-term stability. It seems most likely that gold’s value will increase next year. Even if it doesn’t, though, it still offers more long-term stability and growth than other investment options.

Now that you have seen both sides of the argument, do you think that the gold bull market is actually over, or are you ready to start putting your money in a precious metal that will give you short-term profits as well as long-term stability no matter where the economy heads?

Ways to Keep Up With Gold Prices

Once you enter the business of buying and selling gold, it’s your job to monitor gold prices. While the price of gold is more stable than other investments, the prices still fluctuate to a degree. Every time the prices change, either up or down, that changes your profit margin significantly. Keeping up with the current value isn’t a challenge with the right tools, but it is necessary if you plan to make any money off of your buying and selling.

Know the Terminology First

Gold Terminology

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A common problem many people have is simply not knowing the difference in gold terminology. The spot price is not the same as the retail price, in other words. The spot price of gold is based on the futures value, a type of investment. If you were selling on the commodity market, rather than physically, this would be the value you need to know. The amount people buy and sell at is the retail price. Unless you are buying and trading gold futures, you’ll want to monitor the retail price of the precious metal.

Use News Sources

Gold News

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The value of gold fluctuates throughout the trading day. The best way to know the most up to date value is to use news sources. Yahoo Finance may be a good option. The Wall Street Journal also publishes gold prices on its website. Forbes, CNN, and USA Today post the current values of gold online and in print. Additionally, these sites have experts who predict the value changes likely to happen in the short and long term. Using these sources, you can track the value of gold with any Internet connection.

Use a Smartphone App

Gold App

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If you have a smartphone, visit the app store to find a gold price app. Both iPhone and Android applications are available. Some also offer the international value of gold based on real-time stats from markets throughout the world including the United Kingdom, China, and Australia. For Android phones, Gold Live! is one application option to consider. For Apple users, Gold Price Live may be a good option to consider.

Monitor Your Investments

Monitor Gold

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Like any business owner, it is critical to monitor the purchases and sales you make. Use a business tracking software program to help you to monitor these purchases. When you make a purchase, enter it into the system. When you sell the gold, enter the amount earned from the sale. Calculate your profit. A simple Excel spreadsheet can help you with this. You can also look into QuickBooks or other accounting software to help.

Keeping up with gold prices is part of managing your business. Knowing what’s going out and coming in can help you to make better investment decisions down the road. You’ll also like to see your profits rise, especially as the value of this precious metal keeps climbing.

Tracking 2012 Gold Prices

As 2012 comes to a close, many people are thinking about the best way to improve their finances for the new year. Investing is a popular option, especially with tax returns arriving in the near future, but there are several places to put your money.

Why Gold Is a Good Investment

Gold Investment

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Many financial advisors recommend stocks over purchasing gold. Stocks have high return potential, but stock prices constantly fluctuate and are one of the riskiest investments to make. Gold prices, however, are extremely stable and have been steadily on the rise for more than a decade now. This consistency promises a worthwhile profit for gold investors. It’s a smart decision to put at least part of your investment income into gold.

The History of Gold Prices

Gold Prices

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Benchmark pricing standards for gold came into being nearly 100 years ago in September 1919 in London. In the US, the afternoon fixing of gold prices began in 1968 to serve American traders. Over the past 4 decades, fluctuations in price have been normal.

  • 1970 to 1980: Gold prices steadily increased during this first decade in the US market, peaking at a high of $850 per ounce on January 21, 1980.
  • 1980 to 1999: The next 20 years were not as encouraging for gold investors. Prices steadily dropped, hitting a rock bottom low of $252.90 on June 21, 1999.
  • 1999 to 2001: Known as the ‘Brown Bottom’ period in the gold market, this short amount of time marked the end of low gold prices and the beginning of a lucrative opportunity for investors.

Gold Prices in the New Millenium

New Gold Prices

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After bottoming out in 1999, the price of gold has steadily increased since the turn of the century. Unlike the stock market or oil investments, gold prices increased by more than 300% since 2000 and continue to climb. In early 2008, investors enjoyed a new high of $865.35 per ounce. Just two months later, the price jumped again to $1,023.50 per ounce. The price of gold continues to rise.

  • December 2, 2009: Gold prices surpassed $1,200, closing at $1,215.
  • March 1, 2011: Gold prices closed at $1,432.57 per ounce.
  • August 23, 2011: A record high of $1,913.50 was set.

2012 Gold Prices

2012 Gold Prices

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Investors were not disappointed with gold prices in 2012. Prices never met the astounding benchmark of the previous year, but gold has not closed at less than $1,500 per ounce on any given day this year. Since early September, gold prices remain steady, averaging around $1,700 per ounce. Financial analysts see a trend in prices that compares to the large increase the market experienced in 2009. According to this trend, gold prices will not fall below $1,760 per ounce and are projected to increase to a lucrative $2,400 high by the summer of 2013.

With trends like these and a stability the stock market could never offer, there’s never been a better time to start investing in gold. Buying gold in 2012 promises to yield excellent returns in the short-term future.

Why Gold Coins Aren’t Moving

You can always empty that jar of change on the counter and add it up. Nickels, dimes and other minted coins have a value that isn’t going to go away – it’s stamped on the metal. Gold coins, however, are in a constant state of flux. What they’re worth today and what they’re worth tomorrow could be two wildly different numbers. This is one of the reasons why gold coins aren’t moving as well as other forms of gold.

The Price of Gold

Price of Gold

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Gold is weighed by the ounce; one ounce of gold is worth x amount of cash dollars. That worth is determined by a number of factors. How much gold is in the world? Which countries need gold because they’re running low? How long does it take to mine the gold? All of this is used to determine the price of gold, and it’s a price that changes every single day depending on the rest of the world market.

What’s Wrong with Gold Coins?

Gold Coins

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Gold is commonly turned into coins because coins are easy to trade. Coins are small, transportable, and instantly recognizable. However, they’re also a bit of a gamble. The price of gold coins fluctuates often. Currently, United States American Eagle gold coins are at their lowest value since 2007. Experts predict that the price of gold coins will continue to fall in the last quarter of the year, which means it may not climb again until the New Year.

Falling prices on gold coins reflect the larger economic problems being felt worldwide. Even the fear of a bad economy can affect the price of gold coins and make people less likely to trade. When fewer people are trading in gold coins, fewer investors buy them, and the price of the coins begins to lower. Traditionally, American Eagle gold coins are at their highest prices at the beginning of the year. At the end of the year, many buyers consider them to be a bad investment because values become so low.

Politics and elections greatly affect gold coin prices. When people feel political uncertainty, they do less buying and selling, and the gold market suffers overall. It’s an election year in the United States, and this is one of the reasons why gold coins aren’t moving.

Gold Bullion

Gold Bullion

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Gold bullion sounds like a colorful cube you might throw in a stew pot for dinner, but it’s actually one of the world’s most popular commodities. Gold bullion is gold that has not been melted and stamped into coins. It’s common to find gold bullion in bar form, because bars as so easy to store and transport. Gold bars always have a value, and you need only weigh it to find out what that value is.

The value of gold bullion is determined by weight. Bigger bars don’t always mean more money; the weight of gold varies depending upon purity. Hold two similar pieces of jewelry in your hand and you can feel the difference; 14k gold weighs less than pure 24k gold.

Gold bars aren’t necessarily minted by a specific country, like gold coins, and they’re less affected by politics and headlines. Gold bullion has value anywhere and everywhere in the world, and can always be traded. The worth of gold bullion is determined by the worth of gold itself, while coins are affected strongly by financial and political turmoil in their country of origin.