What is the variation in the price of gold ?
WHAT IS THE EVOLUTION OF THE GOLD PRICE ?
The spot gold price offers a precise view at a given time of the evolution of gold on world markets. It is determined twice a day by the LBMA in London. Gold experts take into account the relationship between supply and demand to set the price of gold. This quote is a clever exercise, which allows us to frame international exchanges. The offer has changed little. Mining production is constant and natural gold reserves are limited. We can therefore predict the quantity of resources available. In addition, gold is a metal that is easily recycled. Nearly 28% of the gold traded on the markets comes from recycling (particularly jewelry). For its part, demand varies according to the needs of industry, jewelers but also investments and central banks. In recent years, demand from certain countries has increased sharply, which causes the price to vary. But other factors also influence the rating:
- The geopolitical situation: wars slow down investments and business development. The economy may slow down and investors then tend to turn to safer savings products, such as precious metals;
- The monetary and financial policy of central banks: key rates have a direct impact on household budgets. Purchasing power is then reduced. With inflation, gold is once again becoming a safe haven.
The size of the market, the scarcity of supply and global economic health are therefore three factors that contribute to the variation in the price of gold.
WHAT IS THE TREND IN THE PRICE OF GOLD ?
In 2022, the price of gold has an upward trend. The start of the year was marked by the outbreak of the war in Ukraine. International trade was disrupted and various shortages began to occur. This conflict also led to a decline in the euro, as banks and financial institutions supported the countries' economies by injecting funds massively. In return, the currency devalued and inflation began. In fact, the purchasing power of households has decreased, making investors fear the worst. Faced with this pattern, individuals such as banks and governments bought gold to guarantee and diversify their foreign exchange reserves, or simply to protect themselves from the loss of monetary value. This craze for gold led to an increase in the price. Gold reached one of its highs in March 2022. Now, the price of gold is stable, around 1,800 euros per ounce (31.10 grams).
Nowadays, individuals can invest in gold using several methods:
- Purchasing physical gold: via bars, ingots or gold coins;
- Purchasing paper gold: ETFs, stocks or trackers.
The gold market is in turmoil. You need to be careful to buy gold from the right people. Choose recognized and reputable companies. At Gold Union, agency staff will welcome you to explain in detail how to invest and what products to buy. You can also ask our experts by contacting them via the e-commerce site.
When purchasing physical gold, you will receive a trial slip which includes:
- The serial number;
- The weight of gold used;
- The gross weight of the ingot;
- The founder or his brand;
- The testerâs signature.
You must keep this certificate. You will be asked for it upon resale or inheritance.
WHEN IS THE BEST TIME TO BUY GOLD ?
You can invest in gold all year round. The Gold Union agencies welcome you to present investment gold bars and coins. The price of gold fluctuates regularly. You must therefore be attentive to its evolution and the geopolitical situation to invest at the right time.
2022 is a good year to invest. The price of gold is maintained by inflation and currency devaluation. You can therefore secure your money and diversify your assets by purchasing gold bars or gold coins. If you are just starting out or if you already have heavy bars, you can opt for 100 gram bars. Smaller, they allow easy storage and gradually enrich the collection. In addition, small bars offer higher premiums than 1 kilo bars. Melting a 100 gram ingot is more difficult. In fact, the price by weight is lower than the selling price.
As for purchasing gold paper, the investment criteria are not the same as for physical gold. You invest in company stocks. It is therefore essential to know the financial health of the company, its activity and its development projects. For their part, ETFs and trackers generally follow the price of physical gold. If you do not buy any, you can bet on the rise or fall of the quote.
Purchasing gold therefore meets your desires and needs. People who want to protect themselves from inflation will happily turn to the acquisition of gold objects. Those who prefer to invest and receive dividends will then opt for purchasing paper gold.
Gold Union professionals support you in all your projects. You can both buy and sell gold coins and gold or silver bars. In agency or on our e-commerce site, you will meet precious metals experts ready to answer all your questions.