Although it is always relatively stable, the price of gold on any given day is determined by a complex interaction of supply and demand factors. If all the gold currently circulating in the world were melted down and pressed into a cube, it would barely measure 60 feet on a side—not quite the size of a small home or bungalow.
While it has applications in technology, more than half of the gold in the world is used to make jewelry. Throughout Asia, in particular, gold still holds a special cultural meaning and 22 and 24 karat gold jewelry is highly prized. In fact, Asia comprises about 70% of the world’s gold jewelry market. Beyond its jewelry applications, gold is very sought after by banks and even some government entities as a concrete, solid investment. The interaction of various market forces determines the current price of gold.
Gold, silver, platinum, and other precious metals are a good investment for a private citizen as well. At California Numismatic Investments, we deal precious metals like the British Gold Sovereign in coin and bullion form. To inquire about current prices and investment opportunities, call us at (800) 225-7531.