The precious metals market is attracting increasing interest. In the current economic conditions, precious metals and investments in them allow you not only to save money, but also to bring dividends. Gold has always been the most sought after and valuable of them, being the equivalent of a monetary unit in all countries.
The world price of gold is set daily on the London Stock Exchange (the so-called gold fixing). Bidding is conducted on pure gold of 999.9 purity. This value becomes a reference point for operations carried out by all exchanges in the world. Based on the results of London trading, the Central Bank of Russia determines how much a gram of gold costs in our country.
Alloys
Gold in its pure form is not used in the manufacture of jewelry, since products made from it are soft, ductile, mechanically fragile, and are easily damaged. To give jewelry the necessary qualities, alloys are created - other metals are added in the required proportions, which are called alloying metals, or alloys.
Precious and base metals are used as ligatures. Platinum, palladium, silver, copper, nickel, zinc and cadmium may be added. Thus, 1 gram of 585 gold contains 58.5% gold, and 41.5% is the alloy. It contains silver, copper, nickel and zinc. The ratio varies. Each of these metals, depending on the quantity, imparts certain qualities to the alloy, changing softness, malleability, casting characteristics, color and melting point. In all cases, the resulting alloy is considered precious; the number of types is very large. As jewelers develop and improve technology, new varieties of alloys appear.
Gold is also used in industry. It is most widespread in radio electronics when creating microcircuits, due to its good conductivity and high anti-corrosion properties. Gold that has not been purified from impurities is used here. It is prohibited by law to be used for making jewelry. This is technical gold, used only in production. Depending on the scope of use, its sample can be from 330 to 999, so the price per 1 gram can be high.
Forecast
The short-term and long-term outlook for the gold rate varies greatly. Below you will find data from investing.com analysts and my opinion.
For the near future
For the coming years
To be honest, there are a lot of forecasts - each more beautiful than the other. Analysts sometimes predict exactly the opposite things. Some say that gold will soon break through the ceiling of 1400-1500 (in dollars per ounce), others point to a series of drops in the rate, supposedly confirming the imminent deflation of the “gold bubble” and going below 1000.
In short, making long-term forecasts is a thankless job. Gold is behaving differently than it did in the past decade. Therefore, instead of forecasts, it is better to closely monitor important news and exchange rate dynamics. Only by the development of the situation will it be possible to understand whether further active growth will continue or whether there will be any corrective movements with a change in trend.
Types of samples
The fineness of gold is its content in bullion and jewelry. That is, this is the amount of yellow metal in alloys with other metals.
There are these types of samples:
- metric;
- carat;
- spool;
- lot.
Currently, the most common is the metric system, the carat system is used in the USA and Canada, and the lot and spool systems are outdated.
In Russia, the metric system has been used for gold since 1927. In this case, the fineness is the number of grams of gold in one kilogram of the alloy.
The following gold samples were established:
- 375 – low grade gold. The minimum acceptable standard for the manufacture of jewelry. This alloy of gold is the hardest and most durable, which is why jewelers love it.
- 500 – used as an assay standard for jewelry. It has poor casting properties, so it is not used for making jewelry.
- 583 is a standard once common in the USSR. It is not used nowadays, but it can be found in stores selling “Soviet era” stocks.
- 585 is the most common and affordable alloy. Its ligature content is the same as in the composition of 583 gold. The characteristics are ideal for making jewelry that is strong and resistant to wear. At the same time, the shine of this gold is the same as that of high-grade gold. Therefore, when buying jewelry, it is worth finding out how much 585 gold costs.
- 750 – used in the manufacture of luxury jewelry. They are valued for their high gold content, but their disadvantage is that they are soft and susceptible to wear.
- 958 - practically not used, it is also very soft and has low resistance to mechanical stress.
- 999 is pure gold. The cost of 1 gram of gold is 999 and is the price for 1 gram of gold on the world market. Its softness is so great that it is subject not only to deformation, but also to chipping. This gold is used to make bars, which are used as an investment tool.
Types of investments in gold
I will describe the main types of investments in this popular metal very briefly.
Compulsory medical insurance
An unallocated metal account is opened in a bank. In fact, you do not receive gold in your hands. It looks like a regular bill, only it contains grams of gold instead of rubles. One of the disadvantages is a double calculation: the price of a troy ounce in US dollars is converted into rubles per gram, accordingly, it is more difficult to predict the dynamics of the exchange rate.
One of the advantages is the high liquidity of the investment instrument. You can open and close compulsory medical insurance within a few minutes, including online in some banks.
Ingots
Those who want to deal with full-fledged yellow metal can choose to buy gold bars. Although, in my opinion, this is more a way to save money rather than increase capital.
The leader in bullion operations is, of course, Sberbank. His bullion will be bought by any other bank, while those sold by another commercial bank will have to be taken to the same bank for sale.
If your choice fell on Sberbank, information about the gold rate can be found on its official website.
Expert opinion
Lyudmila Pestereva
Our most experienced gold investor
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When purchasing bullion, in addition to the gold rate, you will have to track the difference between the purchase and sale price of the bullion, which is a bank commission. Therefore, it is advisable to study all the offers before purchasing and choose the best one for yourself.
Investment coins
Like bullion, it is difficult to classify them as full-fledged investments, despite the name. They are smaller in size and easier to store. In addition, not only banks work with them, but also other organizations that have received appropriate permission. Therefore, the competition here is higher, and the likelihood of finding a good deal is greater. So do not hesitate to study in detail all available offers.
Just like in the story with bullion, the buying and selling rates vary - each seller wants to benefit. Therefore, you will have to track this difference in order to stay in the black.
mutual fund
Russian gold mutual funds are a kind of consumer cooperatives. They also collect money from shareholders, but they use it to buy gold ETFs. An undoubted advantage is that the investor himself determines the size of the share he is willing to contribute.
Disadvantages - small income (as a rule, the money is simply transferred to the most conservative Western ETFs), and there are still commissions for shares that reach up to 5%.
Unallocated gold on MICEX
You won’t be able to purchase impersonal gold on the stock exchange yourself, but you can do this easily through a stock broker. The entry threshold is high (30,000 rubles) compared to other types of investments, but there are no commissions.
High liquidity is also an advantage - such gold, like compulsory medical insurance, does not deteriorate, does not break and is sold instantly.
ETFs (Russian and foreign)
ETFs are a type of gold fund that, unlike mutual funds, purchase physical gold. Their returns are much higher because they are traded on the stock exchange and have minimal management fees. Often below 0.5% per year.
The Russian one is FinEx, offering 11 types of instruments, traded on the Moscow Exchange. There are many more foreign ones, the most famous among them is SPDR Gold Trust (GLD).
Shares of gold mining companies
A very good way to invest. However, you need to be very careful when choosing the company itself. Take the time to study its reporting for the last few periods, as well as the current state of affairs, which can be tracked in the news.
It is better to invest in industry giants that have long proven themselves in the market (for example, Russian). This way you can make money both on the stock price and on the dividends paid by the company.
What does the price consist of?
The price of precious metal is determined by the following factors:
- The total volume of gold supplies in the world.
- The exchange rate of the main world currency is the dollar.
- General state of the world economy.
- Political crises.
- Natural disasters.
- Activity of investors, banks and individual players.
Influenced by these factors and based on the price set by the London Exchange, the price per gram of pure gold is set. It determines the cost of different samples, as well as a gram of technical gold.
Which method is more profitable?
Expert opinion
Lyudmila Pestereva
Our most experienced gold investor
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My opinion is that there are no instruments more profitable than ETFs. All the optimal features are combined here: a low entry threshold, the possibility of diversification, high liquidity and decent profitability. In addition, you can buy them on almost any site. Suitable even for those who are just about to start investing in gold.
The main thing you need here is to carefully monitor the precious metal’s exchange rate. And, of course, don’t miss important news.
What are the prices for gold in Russia per gram?
In Russia, the price for 1 gram of gold on January 18, 2022 was 2433.29 rubles.
Jewelry shop
1 gram of gold in jewelry costs more. How much a gram of 585 gold costs in a jewelry store is influenced by the artistic, antique value of the jewelry, and the work of the craftsman. Along with the hallmark of jewelry, its price is influenced by the popularity of the brand.
Bank
In Sberbank, the price of 1 gram of 585 gold today is 2281 rubles. – purchase, 2557 rub. - sale. Prices are presented on the official website and change online. You can observe fluctuations over a longer period by selecting the appropriate period. An individual can purchase this precious metal only from commercial banks. The higher the weight of the ingot, the cheaper the cost per gram will be.
Pawnshop
Pawn shops accept precious metal in the form of jewelry and scrap. The price of a gram of gold in pawn shops is calculated by simply multiplying the exchange rate by the fineness of the alloy: 2281 (the price of gold per gram) x 0.585 (fineness as a coefficient) = 1334.385 rubles per gram. Scrap is considered to be jewelry that has lost its appearance: with flaws, darkened, oxidized, etc., and accordingly their price is much lower. The average price is 1300–2500 depending on the collateral organization and the condition of the product. For 6 grams of gold delivered to a pawnshop today you will receive approximately 8,700 rubles. in your hands, and per day they will deduct about 40–60 rubles from you, if you decide to buy the gold.
How the price is formed, why it changes and differs in different banks
If the price set by the Central Bank basically has something in common with the world gold rate, then in commercial banks we see a different picture. Let's see why this happens.
What affects the price of gold
The price of gold is made up of several factors:
- news movements and speculation on them;
- the state of the economies of the world's leading countries;
- London Metal Exchange rate;
- rate of the Central Bank of the Russian Federation;
- ruble to dollar exchange rate.
But that is not all. As you know, the Central Bank of the Russian Federation does not work with individuals, so private investors have to turn to commercial banks for gold. And here they have somewhere to roam.
Expert opinion
Lyudmila Pestereva
Our most experienced gold investor
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Each bank sets its own rate in accordance with internal bank policy. They focus on making a profit and not losing customers. Therefore, banks have different prices for precious metals.
However, banks also cannot greatly inflate or underestimate the cost - there is competition here, and the regulator is on guard. So the prices are, of course, different, but the difference is not significant.
At this point I will definitely warn investors - I say “insignificant” for ordinary people who are not interested in investing. For you and me, every penny counts. So compare, compare and compare again. Look for benefits, as long as the market economy allows us to do so.
Price dynamics
Fluctuations in gold prices clearly illustrate changes in the economic situation that must be taken into account when deciding to invest in this precious metal.
The price per troy ounce (4.24 pounds, or 31.1034768 grams) has not changed for more than two hundred years. It jumped with the outbreak of World War II, was then relatively stable until the end of the gold standard in 1971, and rose steadily thereafter. Experts believe this trend will continue.
Over the past six months, the price of gold per gram (according to the Central Bank) on December 29, 2017 broke through both the minimum and maximum at the same time. Min: 11:1 –2485 rub. and Max: 15:20–2650 rub. If we take a longer dynamics, we see a rapid surge that began in 2000 and continued until 2012, after which the price of the precious metal decreased significantly. This does not prevent investors from continuing to invest in this metal, since it becomes possible to buy gold at a reasonable price. In the event of a further fall in prices, the volume of its production will sharply decrease, which will lead to an increase in cost.
At all times, the precious metal was in value, was considered a sign of wealth, and served as a source of accumulation. Gold will always be a reliable way to preserve capital.
Dynamics in recent years
In the last decade, gold seems to be testing investors' strength - the rate has been marked by a series of rapid ups and downs.
Since 2016, the rate began to recover after several years of decline, quite rapidly, and reached an intermediate maximum, which it has not touched since then. Then the trend changed according to the see-saw principle. However, over the past few months we have seen a steady bullish trend.
Gold, Silver and Platinum Quotes from TradingView
physical characteristics
The metal we are considering occupies an honorable seventh place in density and mass among all elements of the periodic table. The specific gravity of 999 gold is 19.3 g/cubic meter. cm. This means that it is almost twice as heavy as lead and three times as heavy as iron!
The high density of gold is not the only advantage of this metal. Pure gold is inert to most acids and alkalis, it is not susceptible to corrosion and oxidation, and retains its properties and noble shine for centuries.
This is a very malleable metal: two milligrams of gold is enough to make a meter-long thread. And it can also be rolled into the thinnest foil, a thousand times thinner than the diameter of a human hair! But this metal is unlucky with its strength: it is soft and malleable. The surface of a gold bar can be easily scratched with a regular steel needle.
The color of 999 gold is a shining yellow, the color of the sun without any nuances. Any other shades indicate the presence of ligatures - other metals that reduce the percentage of aurum in a particular product.
Shades
Probably everyone has noticed that gold items may vary slightly in color. Knowing that jewelry and industrial gold is an alloy will help you understand the reason. Accordingly, the shade depends on which metals were added:
- a reddish tint is given by copper, sometimes with additions of silver;
- yellowish – zinc, nickel and copper;
- greenish – silver, zinc and copper;
- light to silver-yellow – silver and palladium.
This is of purely aesthetic importance; the price of different alloys of the same gold purity per gram is almost the same. The difference is so small that the prices of a kilogram of gold are already the same.
