The price of gold can vary by country. So, while there may be an international benchmark, it can always vary according to each geographical area. The truth is that knowing the price per gram of gold can be very useful, especially in countries with inflation since gold does not lose value compared to currencies or cryptocurrencies. Thus, gold will always be important at economic level.
What is the gold price per gram?
Currently, a gram of gold is priced at $53.33. But over the course of 2022, it had a high of $65.56 and a low of $52.03, maintaining an average of $53.33.
This value is at international level. So, this can differ from country to country, that is to say, its value will depend mainly on inflation, and supply and demand.
What can influence the price of gold?
Like many other things, the value or monetary price of gold will depend mainly on its supply and demand.
Currently, the demand for gold is high compared to previous years. This is due to the fact that nowadays gold is not only used for jewelry, but it is also used in the manufacture of medical and electronic elements. However, in spite of having a considerable demand, there are other factors that also affect its price, among which we can mention:
Interest rates
Interest rates and the price of gold are not always in synchrony. Since gold does not pay interest, you will not earn any interest that you could obtain through other assets such as currencies. This is known as opportunity cost.
While in the vast majority of cases gold rises or falls along with interest rates, it can also change in value independently.
The stock market
It can be said that 50% of the time, the stock market and the price of gold move in opposite directions. If we make an annual interaction by comparing the S&P 500 index and the gold price, it can be concluded that they have an average of zero. This means that gold represents a stable investment.
Therefore, gold tends to become an ideal choice for those who want to invest in something that is not exclusively based on stocks and shares. In fact, when investing in gold, the risk is minimal. In the case of stock markets, unlike the gold, the price of a stock can rise and fall rapidly, or in the case of cryptocurrencies, their value has a tendency to change in a volatile manner.
The U.S. dollar
When pricing natural resources, the U.S. dollar is the benchmark used internationally. In this way, there is no exception when pricing gold.
Currently, the value of gold and the U.S. dollar evolve in tandem; however, in previous years, due to a fall in the price of the dollar, the value of gold increases. These are the two scenarios that have occurred, so again, gold seems to be a fairly reliable investment method.
Is it worth investing in gold?
Due to the stability that the price of gold provides, it represents an excellent long-term investment opportunity. In this sense, it is worth investing in gold. However, this should not be taken lightly, so it is recommended to seek advice from experts in the area in order to be sure that you are buying real and legitimate gold and that it is not a scam.
Therefore, it is advisable that you first get information on how to recognize this mineral. Then, depending on your purchasing power, you can evaluate whether to buy gold bars, coins or even gold jewelry as preferred by some people. Similarly, you also have the option of investing in shares of companies engaged in the purchase and sale of gold. As you can see, there are many ways to invest in it, you just have to find out the safest way to buy gold in your country and little by little start making your fortune. It will depend on you if you start buying and selling gold or just keep it as a long term saving method. Although every investment represents a risk, there is no doubt that gold continues being one of the safest options.