Gold is considered by many to be the most precious of all precious metals. Its worth has been chronicled since its first use thousands of years ago and continues today. The yellow, shimmering metal has grown from a decorative element to a currency staple to the many practical applications we enjoy in modern society today. Through it all, its worth has taken societies by storm, causing peace, war, joy and transforming landscapes.
What Has Gold Been Worth?
Historically, the price of gold held incredible stability, even in the ‘Dark Ages’ as a highly prized way to exchange goods and services. Although an exact price wasn’t placed on gold in these early years, it was still revered much in the same way it is today.
Jumping ahead to 1833, the price of a troy ounce of gold was $18.93 USD. Even a century after 1833, in 1933, the price of a troy ounce of gold only rose a very small amount – $26.33 USD. This was because the U.K. Mint had set the price of gold, and it wasn’t openly available to be traded on the open market from 1717 until 1914.
The frantic economic behaviour surrounding the Great Depression resulted in the American government forbidding stockpiling of precious metals, and shortly after artificially raised the price to $35.
Small increases in gold prices were observed until the late 1960s when a two-tiered valuation system was created and fluctuated more erratically. The “Gold Standard” was dropped and as a commodity, the price of gold in the 1970s skyrocketed settling as high as $615 in the 1980s.
Even those who purchased gold at high prices in those years would see returns on their purchase, with the price of a troy ounce of gold rising to $1,000 in 2009 and as high as $2,000 in 2022.
Although the price of gold has risen and fallen due to many factors, its reliance in the hearts and minds of investors, collectors and those who purchase products that rely on gold components will continue. Today could be a great day to buy!
What is Your Gold Worth Today?
Determining the value of gold is not as simple as buying a loaf of bread from your local grocery store. Whether you are interested in buying gold, selling gold or finding out how to value your gold for insurance purposes, it’s important to have an accurate idea of your precious metals’ value and take into account all of the pricing factors.
Since gold is a natural metal used in the production of manufactured products, it is traded as a commodity, with “spot prices” that rise and fall on any given day. This activity makes a 100% accurate valuation valid only when it is given since the value could be different hours later – even seconds later.
For a quick valuation of your gold bars or gold coins based purely on their weight, check the spot price of gold right now on Royal Bull’s Precious Metals Prices Chart. This price of gold is based on the melted value and does not take into account all of the aspects of your gold products. Let’s look at some of the other ways that the price of your gold products could be much higher than the spot price.
The Value of Your Gold Depends on the Demand for It
When gold is high in demand and production can’t keep up, the price can go up. The opposite is also true.
The Price of Gold Products Depends on Their Value to the Person Who Owns It
If a gold coin was given as a gift from a family member who has passed on, it may have more value than a similar coin purchased from a store. Precious metals are beautiful, last forever and can create connections with people and places that create far greater value than what any buyer could match. Just like your beanie baby collection, the sentimental value attached to your gold coin or gold bar may inflate its value.
Gold’s Value Depends on The Design Stamped on It
Cast gold bars usually only have the essential gold contents stamped on one side, but a gold coin could have intricate patterns, trademarked characters and commemorative symbols. Popular designs that buyers want to have in their possession often sell better (and sometimes at higher prices) than others. A Royal Canadian Mint Maple Leaf gold coin looks great, but a Mexican Gold 50 Pesos Coins from 1947 could be of greater value than a Maple Leaf.
Some Gold Coins and Gold Bars Have Trademarked Brands on Them
Although trademarked designs are more difficult to find in gold coins than silver coins, entertainment franchises often sell rights to their designs to mints and for mints to recoup the costs they need to raise prices.
The Price of Gold Products Depends on Where It Was Made
A pure gold coin from an unknown mint might have less value than a similar gold coin produced in the U.S.A. or Canada. Canadian investors do seem to have a penchant for buying Canadian products, and this can influence the valuation of these gold products.
The Valuation of Your Gold Bars and Coins Depends on the Products’ History
A ceremonial gold goblet used by the ancient Egyptians will be worth significantly more than a bar of gold that weighs exactly the same. Understanding the history of your gold – where it was made, where it has been and how it was used – is crucial to determining its value.
The Price of Gold Depends on Who is Buying It
Your gold bar may not have much value to your aunt, but a gold appraiser would be able to give you far more value. When you consider buying and selling your gold products, do your research and trust precious metal industry leaders to provide you with accurate buying/selling information.
The Value of Your Gold Depends on Its Scarcity
When commodities become difficult to source, their prices rise. Precious metals like gold are no exception. When gold is in high demand and availability is low, be certain that the price will rise. Keep in mind that there are many organizations (including businesses and governments) that stockpile gold and silver for this very reason – when the prices rise, they offload some of their holdings to make a quick buck.
To determine whether the price of gold should be set at a higher or lower price, a number of factors are analyzed, including demand and economic factors. “The Gold Fix” sets the price of gold for contracts between members of the London bullion market.
The Value of Your Gold Depends on Many Factors
Although your gold may look ordinary, its value can be based on many factors. Your particular gold bar or gold coin may have value apart from its precious metal weight. To take into account the many other variables needed when determining the worth of your silver, contact Royal Bull right now.
