The price of gold reflects not only the current political and economic situation – it also provides reliable information about the hopes and concerns people have. The more uncertain conditions are and the more unstable the currency, the greater the demand for gold coins and gold bars – because gold has long been considered a stable and reliable crisis currency.
The latest example of this is the sharp rise in popularity of gold among English buyers in advance of what was ultimately the vote for the UK to leave the EU. In order to prevent their money from depreciating, many investors fled to gold, which serves as a crisis currency.
Development of the price of gold
The history of the price of gold since the first gold coin was minted in the 6th century BC would fill entire books. Important milestones include the introduction of the traditional gold standard in the early 19th century, the global economic crisis in 1929 and, in its wake, the prohibition of the private ownership of gold as well as the establishment of the Bretton Woods system with the rise of the gold-backed dollar to a global currency in the period after World War Two.
Looking at more recent history, the period from 2001 to 2013 has been characterised by a sharp upward trend, which culminated in an all-time high of nearly USD 2,000 per troy ounce. The price subsequently fell and has been hovering between USD 1,200 and USD 1,300 for several months.
More favourable gold price thanks to the average price method – with GOLDEN GATES
But it is not just the world’s stock markets that determine how much gold you get for your money. Traders also offer what, at times, can be very different conditions. When you buy gold coins and gold bars on a regular basis at GOLDEN GATES, you will benefit from a well-thought-out and proven purchasing policy. In contrast to a one-off purchase, for which only the price of gold at the time of the purchase is relevant, regular purchasers benefit from our average price method and, of course, from the cost average effect. Each month, we buy precious metals in the amount of the sum paid by the client – in exchange, we provide the client with the most favourable purchase price per gram of precious metal, for example, with our GOLDEN GATES GOLD and GOLDEN GATES JUNIOR products.
Schedule an appointment with our advisor and benefit from the flexible and transparent conditions of the Golden Gates gold savings plan!
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