Gold has been used as currency for over 2000 years. The gold price per ounce never really had a fixed price. It was always measured in relation to the goods and services that it bought. It wasn’t until after World War II, in 1944 that a ‘gold standard’ was introduced after a conference at Bretton Woods. At that conference they fixed the gold price per ounce at $35. At that time the US dollar was 1/35th of an ounce of gold.
The system was initially a success and it lasted for about 27 years when in 1971 the US President at the time, President Nixon took gold off the gold standard and the US no longer could convert the dollar to gold. Taking the US off the gold standard was a huge turning point as the US was now free to just ‘print’ the currency.
Today all investments are driven by ’supply and demand’. Unlike other commodities which are consumed, most of the gold that has ever been mined still exists by either hoarding or use for jewelry. So the gold price per ounce as with most investments are run by ‘Greed and Fear’ rather than production.
So on to investing today. Is the current gold price per ounce a bargin? With unprecedented amounts of currency being created and with no place for interest rates to go, the US is in big trouble. History shows us that inflating the money supply has always ended badly. But it also creates a fantastic opportunity for the educated investor. People who now understand what is going on with gold have a once in a life time opportunity. Which is great for you.
Most people think that investing in gold and silver in complicated and should only be left to the professionals but that is not the case. Investing in precious metals is actually one of the easiest investments to make. Firstly it is very important to buy the physical metal first. It is very simple to find a safe, secure dealer and take possession of your gold at home or keep it in a secure vault. Just doing that one step will keep you way ahead of most of the professionals. If you are more advanced, then you can buy the gold mining shares or EFT’s to give you more leverage. Today the gold price per ounce at only $1059 approx is an absolute bargin. Which is why you are seeing many gold adverts on TV trying to get you to send them your gold.
