How Gold Pricing Works

Gold Holds

Gold has a tendency to retain steady value in the market, because of its finite resources and hardy composure it is what the bigwigs buy when the economy goes south

We present to you some basic facts about gold pricing of yesterday, today and tomorrow.

Gold Fixing

Since 1919 the global price of gold has been fixed by five individuals from London Gold Fixing.

Gold fixing is announced twice daily, in the morning and in the afternoon and decided by a group of five members who use market reaction to gauge and announce the price.

This is accomplished by using a dedicated and secure conference call facility so the Chairman and the four other members may speak freely about pricing and market reaction.

“Fixing will last as long as it is necessary to establish a price that satisfies both buyers and sellers.”

This fixed price means that all market users buy and sell gold at a standardized price, and provides a basis for pricing in many different industries.

Gold Weight

Pure gold bullion (24K) is weighed in Troy Measurements, the troy ounce being the traditional unit of weight for precious metals and gems.

A troy pound is equal to 373 grams and there are 12 troy ounces in every troy pound.

One Troy Ounce equals

• 1.097 regular ounce
• 120 carots
• 155.52 metric carats

A few other conversions to help make sense of it

• 14.583 troy ounce = 1 pound
• 32.15 troy ounces = 1 kilogramme
• 32,150 troy ounces = 1 metric ton
• 1000 troy ounces = 31.1 kilograms

This unit of measurement is said to have been used since medieval times and late in the 18th century was established as a standardized unit on which other weights were based.

Gold Quality

The unit of measurement that determines gold quality is karats. (Not to be confused with carats which measures the mass of gemstones and pearls).

A karat is a measurement of the amount of pure gold found in a gold item. A higher number of karats means a higher gold content, which makes an item more valuable.

Here is a quick breakdown

• 24K = 100% Gold
• 18K = 75% Gold
• 14K = 58.3% Gold
• 10K = 41.7% Gold

Anything below 10K cannot be called pure gold in the United States.

Gold Pricing and The Economy

The value of Gold and other precious metals tends to go up when there is fear of a weak economy.

Because of its indestructible properties gold is in a unique position, it is produced to be collected, because it simply can’t be used up.

Generally those that collect it do so to protect themselves against inflation and economic recession.

As investors watch the dollar decline in value they are purchasing gold, mainly because it is a stable investment with a fixed price based on a world market rather than a national one.

The History of Gold

Throughout the ages gold has been used as an effective bartering tool. Since its first discovery glowing from a riverbed somewhere, mankind has had a fascination with the element.

The raw beauty and highly malleable nature of gold makes it easy to manipulate and because it is found naturally worldwide it is still accepted by many societies as a unit of trade.

Unrelated cultures from all over the globe show the same reverence for gold, and it is often infused with religious power of the gods and reserved to adorn royalty.

Gold and The Future

Because of its ability to conduct both heat and electricity gold is increasingly used in more practical applications, from car parts to computer chips.

This alone could continue to keep demand much higher than supply in the future.

Gold rarely experiences huge drops in market as it is, so there is concern that heightened demand will intensify the search and mining of more worldwide.

This is great for the price of gold (and those who own it) because its value will continue to skyrocket if persistent demand exceeds the existing supply.

The catch is the resulting consequences to the environment and the people near where gold is mined, especially on a large scale.

The future of gold looks great, its the future of Mother Earth we are a little concerned about.

Gold Fixing - A Monopoloy?

At 10:30am and 3pm five men decide the price of gold for the entire world after a 10 minute phone call.

In case you forgot, the process is based on market response, the Chairman suggests a price and his four affiliates contact their dealing rooms to gauge market response to that price.

If more dealers want to buy the price goes up, if more want to sell the price goes down, simple.

The ritualistic process used to achieve gold pricing has not changed one iota since its inception in 1919. This global pricing affects almost every economy on the planet either directly or indirectly and it is ultimately in the hands of 5 men.

If London Gold Fixing is a monopoly, they definitely picked the right industry to control.

When is The Best Time to Sell?

As with any other commodity, it is best to sell when the price is high. For those of you who don’t already know, the price of gold (and platinum) is currently reaching record highs.

Because the dollar is declining, many are investing in gold even though the price is high.

We can’t think of a better time than right now.

No matter when you decide to sell your gold, we hope you’ll consider selling it to us.

We offer a fair market price for your recyclable items and higher prices if you have fine jewelry to sell.

It’s easy, simply fill out the form above or call us at 1-877-465-3720 and take advantage of the soaring price of gold before it dips again.

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