Interest in gold has risen sharply in recent weeks. The price reached a record high of $5,600 per ounce on January 29, before falling to just under $5,000 on Sunday. This trend shows that more people are looking for gold as a safe investment during uncertain economic times and rising global tensions.
Understanding the value of gold is important for buyers. Gold weighs in troy ounces, with one ounce equal to 31.1035 grams. The price for one gram of gold is about $160 at $5,000 per ounce. Purity is another key factor, measured in karats. Pure gold is 24 karats, while lower numbers, such as 22K or 18K, mean the gold is mixed with other metals. Jewelers often stamp gold items to show their purity.
The price of gold has quadrupled over the last decade, increasing from $1,250 in 2016 to around $5,000 today. Historically, the US dollar was linked to gold until 1971, when market forces began to set gold prices.
Globally, gold prices are determined in the spot market, mainly in US dollars. Local prices can vary due to currency exchange rates, taxes, and local demand. The US has the largest gold reserves with 8,133 tonnes, followed by Germany and Italy.
Vocabulary List:
- Purity /ˈpjʊə.rɪ.ti/ (noun): The state of being free from contamination or pollution; in gold it refers to the proportion of gold within an alloy.
- Karats /ˈkær.əts/ (noun): A unit of measurement for the purity of gold where 24 karats signifies pure gold.
- Reserves /rɪˈzɜrvz/ (noun): Quantity of a resource that is held in stock; in this context it refers to the amount of gold held by a country.
- Trend /trɛnd/ (noun): A general direction in which something is developing or changing.
- Tensions /ˈtɛn.ʃənz/ (noun): Mental or emotional strain; in this context it refers to the strained situations in global politics or economics.
- Decade /ˈdɛk.eɪd/ (noun): A period of ten years.
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