Regal Assets Banner

Archive | Gold Price

Gold Price and How It Is Determined

Gold price is known to be determined by a number of factors, and there is no exception for gold coins. Before we start with anything else, let us clarify the difference of price and value of gold, specifically the bullion coins. The price of gold is related to the amount of money that you have to pay whenever a coin is bought. Value, on the contrary, is how much money you will get at the time you sell your gold.

Now that you’ve understood the difference between price and value of gold, let us look at the factors determining the gold price.

1. Seasonality. During different seasons, gold coins are usually priced differently. Commonly, if you want to sell your gold you should do it in November and December because the price is usually high during these two months. If you are planning to buy gold, do it during festivals because at these times there would usually be sales and discount offers.

2. Economic Condition. When the economy is bad, the price of commodities including gold will usually be affected if not much, a little. It’s a good thing that gold is not likely to be negatively affected by economic depression, but rather positively. Thus, you can expect the price of gold to escalate during economic crisis. When the economy comes back to a stable condition, gold will not experience a downfall in price either, but rather the price will become stabilized.

3. Demand and Supply. When there is demand, there is supply – this is a very common theory yet it is very accurate and believable. In countries where the demand is growing for gold, you can expect the price of this precious metal to increase. The price may become higher when there is a shortage of supply and it’s becoming difficult to meet the current demand for gold.

4. Inflation. There is no denying that inflation has a great influence over the price of gold. The theory behind this is that when inflation becomes severe, people will find a way to maintain the value of their money. Gold is able to do this excellently, so there will be a growing demand for it. When more people look forward to buying gold, gold price will undoubtedly increase.

Click on the image below to see the gold price chart.

Regal Assets Gold Chart

Posted in Gold Price0 Comments