In the current economic situation where the red numbers are one of the main protagonists in the stock markets and the profitability of money is not at its best , investing in gold appears as an interesting alternative to protect savings . Investing in gold is a mechanism for investment diversification, a way of conserving capital in the form of a tangible physical medium.
In order to start taking the first steps in the world of investing in this precious metal, it is necessary to be clear about some important concepts . The units of measurement, the existing investment possibilities, etc., are some concepts that must be evaluated in order to get the most out of the world of gold.
What is the weight of an ounce of gold?
The weight of an ounce of gold in grams is 31.1034768 grams.
What is the price of an ounce of gold?
Currently, an ounce of gold is trading at €1,686.86
What is the value of a gram of gold?
Currently the value of a gram of pure gold is €54.24
How much does a 24 carat gold bar weigh?
The most common 24 carat Good Delivery ingot weights are: 2 gr, 5 gr, 10 gr, 20 gr, 50 gr, 100 gr, 250 gr, 500 gr and 1000 gr
Ounce or troy ounce
The troy ounce is the name given to the imperial measure used to measure the mass of gold and, in general, of precious metals. It is used to set the price of gold in the market , both in dollars and in euros, this is the measure used to set the price of this metal. It is important not to confuse the concept of a common ounce with that of a troy ounce, which is only used to measure the purchase and sale of precious metals such as gold. The equivalence of the troy ounce with the units of measurement of the international system is one troy ounce equals 31.1 grams , that is, there are 32.15 troy ounces in a kilo of mass of a certain metal.
This way of measuring the mass of precious metals comes from the monetary system used in ancient Rome . The Romans used bronze bars of various weights as currency. Thus, a serious aes was the equivalent to the current pound and a twelfth part of this was the uncia or ounce. Subsequently, an ounce was renamed as one sixteenth of a pound, also known as an avoirdupois ounce . In these changes, the troy ounce has been maintained to measure the weight of heavy metals with the intention of preserving the purity standards of these materials. The troy ounce is 10% heavier than the avoirdupois ounce which is used in the United States.
Gold ounce price evolution
One of the most important moments in history in terms of the price of gold occurred in 1980 when an ounce of this metal reached a value of $850 . The inflation produced worldwide caused this price to fall until the year 2000 when a change in this trend was observed.
As usual, those resources that are scarcer in nature are the ones that are more expensive, they are those whose price becomes higher. The demand for gold skyrocketed and its scarcity of deposits led to an increase in its price .
In 2012, the price of an ounce of gold was around 1,050 dollars . In 2016, there was a rise in the gold ounce price of about 15%, reaching a price per ounce of $1,200 . As a general rule, the value of an ounce of gold grows between 100 and 150 dollars, an aspect that shows how attractive investments in this metal are as a method of protecting savings.
Gold is not affected by deflation or inflation, which makes the risk in this type of investment close to zero compared to dynamic investments. This, together with the increasing gold ounce price over the years, makes more and more people interested in this savings alternative.
Some alternatives to invest in gold
There are various options available in the market to be able to take part in this form of investment . Some of them are:
Physical purchases of gold . It is the option used by individual investors around the world. It is the ideal method for long-term investors who do not want to take risks.
Through ETFs. It is the way used by short-term investors who want to protect their portfolio when stock or bond prices fall. In this case, metal is used as the underlying, replicating its behavior.
Investment funds. These products invest in companies engaged in the gold mining business . It is a more speculative option.
Certificates and warrants. Certificates are publicly traded products that replicate the price of a commodity .