In recent days, international analyses have recorded gold prices at an all-time high, both in Chile and globally. But do you know how much the metal is currently worth, why it is so valuable, what its cost is, and where it can be bought and sold?
To understand why we are witnessing a “gold rush,” it’s noteworthy that on August 19, a gold bar reached a value of $1 million for the first time in history.
Record Prices: Why is Gold So Expensive?
According to BBCL, Ignacio Mieres, head of analysis at XTB Latam, emphasized that the current performance of gold can be primarily attributed to “the prevailing uncertainty in the financial markets.”
The expert pointed out two key factors driving the rise in metal prices: heightened demand from central banks globally and uncertainty surrounding global economic activity.
Specifically, he referred to the economies of the world’s two largest powers: the United States and China. While the East is “struggling to improve its economic indicators,” North America is experiencing “recent weakness in its labor market.”
Moreover, the price of gold has surged due to anticipations of a potential reduction in interest rates as a part of the monetary policy in the United States. Should this occur, bond yields would decrease, “which would enhance gold’s appeal as a safe-haven asset,” he explained.
What is the Current Price of Gold?
According to various portals showing real-time values, the price of 1 troy ounce of gold today, Friday, August 23, is approximately $2,510.
To illustrate the increase, according to Inversoro.es, in August 2020, the price for the same quantity was around $1,795, in August 2019, it was about $1,500, and in August 2015, it was nearly $1,090.
Gold bars typically weigh around 400 ounces; thus, each bar is currently valued at over $1 million.
However, for a more relatable figure that the average person can grasp, what is the price of a gram of gold in Chile?
The price of 1 gram varies depending on the carats (approximate values at the time of writing):
10K gold: $30,500 per gram
14K gold: $42,767 per gram
18K gold: $54,987 per gram
22K gold: $67,206 per gram
24K gold: $73,316 per gram.
Where Can I Buy and/or Sell Gold?
In Chile, there are various stores specializing in buying and selling gold. Additionally, there is an institution authorized to accept jewelry made from gold as collateral in exchange for a loan.
This institution is the General Directorate of Pledge Credit (Dicrep), commonly known as Tía Rica. It is a state institution that offers a maximum loan not exceeding 60% of the appraised value of the item, with a cap of $500,000 for jewelry and $200,000 for other items.
You can find information on Tía Rica branches across the country by CLICKING HERE if you want to take advantage of the gold rush and the appeal of high gold prices.
In recent days, international analyses have classified the price of gold as a record, both in Chile and worldwide. But do you know how much the metal is worth, why it is so expensive, how much it costs and where it can be bought and sold?
To get an idea of why we are talking about the “gold rush”, on August 19, A gold bar was worth $1 million dollars for the first time in history.
Record prices: Why is gold so expensive?
According to BBCL reported at the time, Ignacio Mieres, head of analysis at XTB Latam, stressed that this current performance of gold is mainly explained by “the uncertainty that prevails in the financial markets.”
According to the expert, there are two key factors driving the upward trend in metal prices: high demand from central banks around the world and uncertainty about global economic activity.
Specifically, he referred to the economies of the two great powers: the United States and China. While those in the East “face difficulties in improving their indicators,” North America shows “a recent weakness in its labor market.”
Additionally, the price of gold has surged due to expectations regarding a possible lowering of interest rates as part of the monetary policy in the United States. If this were to happen, bond yields would fall, “making gold stand out as a safe haven asset,” he explained.
How much does gold cost today?
According to various portals that track real-time data, the price of 1 troy ounce of gold at noon today, Friday, August 23, is at $2,510 dollars.
To understand the rise, according to Inversoro.es, in August 2020, the same size cost around $1,795 dollars. In August 2019, it was approximately $1,500 dollars and in August 2015, it was close to $1,090 dollars.
Gold bars typically weigh around 400 ounces, so each one is worth more than $1 million today.
But for figures more relatable to the average person, How much is a gram of gold in Chile?
10K gold: $30,500 p/gr.
14K gold: $42,767 p/gr.
18K gold: $54,987 p/gr.
22K gold: $67,206 p/gr.
24K gold: $73,316 p/gr.
Where can I buy and/or sell gold?
In Chile, there are various locations dedicated to buying and selling gold. There’s also an institution authorized to accept jewelry made from the metal as collateral in exchange for a loan.
This is the General Directorate of Pledge Credit (Dicrep), also known as the Rich Aunt. A State institution, which offers a maximum credit that must not exceed 60% of the appraisal value of the item, with a limit of $500,000 for jewelry and $200,000 for miscellaneous items.
You can find out the locations of Tía Rica branches throughout the country by CLICKING HERE if you want to take advantage of the gold rush and the sparkle of high gold prices.
Benefits of Investing in Gold
Investing in gold provides several advantages for both new and experienced investors:
- Hedge Against Inflation: Gold retains its value over time, making it a great investment during periods of inflation.
- Safe Haven Asset: During times of economic uncertainty, many investors flock to gold to protect their assets.
- Diversification: Including gold in your investment portfolio can reduce risk and volatility.
- Global Liquidity: Gold can be bought or sold worldwide, ensuring that you can access your investment whenever needed.
Practical Tips for Buying Gold
When considering the purchase of gold, here are some practical tips:
- Research Thoroughly: Understand the current market rates and trends by visiting reliable financial news websites and gold trading platforms.
- Buy from Reputable Dealers: Ensure that you are purchasing gold from trustworthy sources to avoid scams.
- Consider Different Forms: Decide whether to buy gold coins, bars, or jewelry, depending on your investment goals.
- Check Purity: Ensure that the gold you purchase has a certification of its purity (measured in karats).
- Stay Informed: Follow economic news to anticipate changes in gold prices that could affect your investment.
Case Studies: Success Stories of Gold Investment
Several investors have significantly profited from investing in gold over the years. Here are a couple of noteworthy examples:
- Investor A: In 2015, Investor A purchased gold at $1,100 per ounce. By 2020, when the price peaked at $1,800, they sold their gold and reaped a 64% profit.
- Investor B: Investor B focused on gold coins, acquiring rare pieces over time. These coins, initially worth less than their gold content, appreciated in value significantly as their rarity became recognized in the market.
First-Hand Experience: My Journey with Gold Investment
My experience with gold began in 2018, when I purchased my first gold coin. Initially, I was hesitant about investing in such a volatile market, but the stability of gold during a tumultuous economy gave me confidence. Over the years, I diversified my portfolio with a mix of gold coins and small bars, ensuring that I could easily liquidate parts of my investment as needed. Watching the prices fluctuate taught me patience and the importance of timing in gold investing.
