Welcome to Value of Gold, the #1 Source for Gold Investors

Welcome! If you would like to know the current price per oz, look at the right side of this page. We have a live price monitor that displays the current gold price on the market. If you are an investor wondering if Gold is a good choice for you, you will find a lot of valuable information on this website about gold value, pricing and whether or not gold would be a good option for you.

What makes Gold so Valuable?

What is it about gold that makes it so valuable? Why is it more valuable than copper, tin or even silver? Is it because of its shiny color? Since ancient times, gold has always had an intrinsic value. The precious metal is practically indestructible. It has been used to create cherished treasures and all types of valuable jewelry.

Gold Price Evolution in a five year time span

Like all physical commodities, the value of gold depends on the laws of supply and demand. The price is controlled through normal market functions. As more and more buyers expres an interest in any commodity, including gold, they will drive the price higher. Conversely, if there is little or no interest in acquiring gold, the price will inevitably fall. At some new dollar amount, gold will reach an equilibrium point where a transaction
can take place between the person holding the gold and the person desiring to own the gold.

Supply

Gold is one of the rarest elements on earth. According to the World Gold Council, gold represents just 1 part per billion or 0.0000001% of all the elements on earth. To understand just how small that is, the most common element, oxygen equals 46.6% of all earthly elements. Somewhere in between lies more common metals like iron, copper and aluminum. The World Gold Council estimated that in 2010, the world supply of gold was approximately 168,300 tons. If it was possible to form all of that gold into a single cube, it would measure just over 67 feet on each side, the height of a 6 story building. Estimates vary on how much more gold remains to be mined from the earth. There are a number of active mines and more to be developed. Most of the “easy” gold has already been mined. Going after more difficult to retrieve gold deposits is more expensive. Even if a mining company discovers a potential source of gold, it may be economically unfeasible to invest the time, labor and equipment to extract golden metal. As the spot price of gold increases, it makes mining new deposits economically more rewarding.

Demand

Gold is used to make jewelry, it has a number of technical uses and, most importantly, it acts as a store of wealth and an investment product. Unlike paper currency, an ounce of gold is worth the same amount anywhere in the world. It is a hedge against inflation and investors like to own it in politically turbulent times. In our current world economy, gold has been increasing in demand. A weak dollar and weak EURO helps support the price of gold. Many countries are struggling with political unrest and others have to deal with huge debt. The long term trend definitely points to greater demand and higher prices.

Pricing

Price is based on the troy ounce. The intrinsic price of gold is determined daily in the spot gold market where traders buy and sell the precious metal. Gold bullion generally sells for a slight premium to the spot price, while finished goods like gold jewelry sell for a substantial premium to their gold content. Collectible gold coins, depending upon their rarity and condition, can sell for anywhere from slightly more than their spot value or for hundreds of times their spot value. Check out the current live price by looking at the sidebar on the top-right section of this page.