Going Rate for an Ounce of Gold

The going rate for gold in the United States as of April 23, 2009, is about $906.55 per ounce of gold. There are many different values throughout the world. For instance, in Great Britain the value of gold is around $695. However, in other countries that are poorer and do not have as much of an abundance of gold, it is a much higher rate.

But what affects the price of gold? The best answer to that question is one that was taught back in elementary school: supply and demand. Of course, as the supply of gold increases, the demand decreases and therefore the price will drop. Right now, there is more supply of gold in the United States than in any other country. However, the demand of gold in the United States is also the highest. Seeing this, there is somewhat of an equilibrium between the two. For the most part, the price of gold is fairly stable when compared to the rest of the market. It rarely ever changes more than $0.10-0.60 in value. There are other factors that come in to play, however.

Almost all of the gold supply comes from mining, so if the cost to mine the gold increases, then the price of gold will increase. Also, the same policy applies to the production of gold. If a jeweler needs to spend more money to produce a gold ring or gold jewelry, then the demand goes up and then the price of gold will rise.