Among all the precious metals available on the global market, gold is probably the most highly traded as an investment. Investors usually purchase gold as part of a diversified portfolio as a means of reducing risk, particularly through the use of various derivatives and futures contracts. The gold market is also subject to great volatility and speculation, as are all other markets.
The present period of global economic and political uncertainty has caused a marked decrease in in the wholesale market for gold. In the United States the gold rate has dropped from more than $900 an ounce at the end of 2021 to less than $ 650 an ounce currently. This drop is attributed primarily to the increasing difficulty of obtaining gold from the rapidly depleting mines around the world. For the last few years the prices of gold pieces have fluctuated according to the degree of governmental uncertainty. It is for this reason that the gold price has fluctuated so much in recent years.
There are numerous ways in which the gold price can be determined on the physical gold market. It can be determined by the amount of physical gold that an investor has in his possession, the present gold price per ounce, and the trend of the gold price over long term periods. It is important to remember that the present gold price per ounce is derived from trading gold futures contracts, and not from the actual physical gold in your possession. While it is true that there are no physical gold futures contracts in existence today, because all trading is done on the commodity exchanges, the physical gold market never closes.