New Delhi: Interest in gold has soared recently, with the price of one ounce briefly hitting a record $5,600 on January 29 before settling just below $5,000. Amid market volatility and global tensions, more people are turning to gold as a safe investment.
Understanding the value of gold requires looking at both its weight and purity. Precious metals, including gold, are measured in troy ounces, with one troy ounce equal to 31.1035 grams. At present rates, one gram of gold costs roughly $160, while a standard 400-troy-ounce (12.44 kg) gold bar is valued at around $2 million.
Troy ounces differ from regular ounces, which weigh 28.35 grams and are used for everyday items like food.
Purity is measured in karats. Pure gold is 24K, while 22K, 18K and 9K indicate mixtures with metals such as silver, copper or zinc. Stamps on gold items, like 24K or 999, indicate the percentage of purity, while 18K pieces typically carry a 750 stamp that means 75 percent pure.
Different karat levels are used for different purposes: 24K is soft, never tarnishes and is ideal for investment coins or bars; 22K is durable and commonly used for luxury jewellery; 18K offers strength and warmth for fine jewellery; and 9K provides maximum durability for affordable pieces.
Other karat levels, including 14K and 10K, are sold around the world.
When purchasing gold jewellery, the cost depends on the spot price, the item’s weight and purity, craftsmanship and any applicable taxes. While the spot price itself is fixed, buyers can often negotiate the labour or making charges.
Gold has long been a symbol of wealth and security, valued for thousands of years. It has served as currency, jewellery and a safe haven during market turbulence. Until 1971, the US dollar was directly tied to gold. In the classical gold standard era, one could exchange $20 for an ounce.
During the Great Depression, the price rose to $35 an ounce, and later, under President Nixon, gold was decoupled from the dollar, leaving its value to be determined by market forces.
Over the past decade, gold prices have quadrupled, from $1,250 per ounce in 2016 to nearly $5,000 today.
Gold prices are set on the global spot market in US dollars, with exchanges in London and New York serving as benchmarks. Local prices vary depending on currency conversions, minting and distribution costs and taxes or import duties. For instance, India applies 3 percent GST on gold, while the United Kingdom and the United Arab Emirates impose no tax on investment gold.
Countries also produce unique bullion coins, each of carry cultural and historical significance. For instance, the US Gold Eagle, China’s Gold Panda and South Africa’s Krugerrand.
When it comes to reserves, the United States leads with 8,133 tonnes, nearly equal to the combined total of the next three countries. Germany follows with 3,350 tonnes, and Italy holds 2,451 tonnes. These reserves highlight which nations have the largest financial cushions against economic uncertainty.
Gold continues to attract attention from investors, collectors and central banks, offering both tangible security and a hedge against global volatility. Its value is influenced by market forces as well as by history and culture. Strategic reserves also play a role, making gold one of the world’s most enduring forms of wealth.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
