Taipan Investor

For the first time in six months the value of gold has reached 00 per ounce. The move could be seen as a sign that investors believe the worst of the global recession is over. It could be seen however as a way that investors are safeguarding their investments against recession.

Over the previous year gold’s value has risen 13.6%, showing it is still one of the most favoured investment choices during inflation. You can look at this in two ways. Optimism would have us see it as a sign of recovery, getting out of the recession.

If you are optimistic and see the rising value as a sign of economic recovery, buying gold bullion coins before their price gets any higher could make for clever trading. Selling them in the future will give you a profit on your investment. On the other hand, if you own any gold bullion coins now would be a good time to sell.

On the other hand you might see high gold prices as a sign that we are still in the grip of the recession as gold is used to protect wealth. Whilst the price of gold has been increasing, the value of the US dollar has been declining, which does tend to point to continued recession, not recovery.

Uncertainty on the part of businesses and traders has contributed to higher prices. Traders are seeing safety in gold and governments are protecting themselves with higher gold reserves.

There are questions circulating over the health of the world’s economies, where interest rates are heading is one of them. This has led to stock piling and hoarding of gold.

Gold reached an all-time record of ,032 an ounce in March 2008. March 2009 was the last time that the price reached 00 per ounce.

Gold is sold in troy ounces. 480 grains or 31.1035 grams is the equivalent of a troy ounce. In the UK and US, avoirdupois ounces are used as measuring weights, with one troy ounce equal to 1.09711 avoirdupois ounces.

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