Gold reserves are one of the indicators of the country's well-being, a symbolic guarantor of its economic and social well-being. Today, about 90% of the world's gold reserves are stored in the form of gold bullion in special state vaults. The largest reserves of monetary gold are held by the USA, Italy, France, Germany and China. The undisputed leader in terms of stocks gold bars remain the USA. However, gold today is the property of individuals. But who is the richest owner is not known for certain. As a version - this is one of the royal families of the East.
Why do we need gold reserves?
The logical question is, why are gold reserves so important? Why did this precious metal become the cornerstone in the global economic system?
Firstly, the presence of substantial gold reserves allows the state to maintain economic independence from other currencies. Secondly, gold is still one of the reliable ways of investing. Over the past decade alone, the value of this yellow metal has grown more than 5 times. In the event of an unstable economic situation in the domestic market of the state, threatening inflation of the national currency, gold will be able to fulfill the functions of a certain monetary equivalent recognized around the world.
Investing in gold: profitable or not?
In 2005, Rick Munaritz, one of the co-owners of the Internet service, faced a dilemma: what is the most reliable way to invest your money in Google or gold. At that time, their value on the exchange was the same. But in 2008, a crisis struck and trading on Google closed at around $ 307 per share, and gold at around $ 866 per ounce.
To the roots of history
But what is such a strange measure - a troy ounce of gold? Why is the universal weight unit grams not used when weighing gold? And what is the ratio of these two units. Troy ounce in grams - how much? Let's try to understand the essence of this issue.
An ounce is nothing but the twelfth of the ancient Roman bronze coin “Assy”. The Romans used large bronze coins chopped into pieces as money. Over time, this currency began to be used as a measure of weight. This is due to such a pedantic attitude of the Romans to coinage. There was no doubt that they complied with the standards of coinage. How much does a troy ounce weigh in grams? You will learn more about this later. First, a little history.
Just a reservation, the ancient city of Troy has nothing to do with this unit of measurement. The troy ounce owes its name to the small town of Troyes. In the twelfth century, fairs were held here, in which merchants from around the world participated. And therefore, the need arose for a single universal measure. The variety of already existing national currencies somewhat complicated the establishment of trade relations. Preference was given to the French livery. It included a troy pound of silver, which, in turn, was divided into twelve ounce ounces. Since then, the troy ounce has gained popularity and successfully adapted to the realities of the time. Especially for measuring the weight of expensive and valuable materials. Troy ounce - how many grams? It's time to find out about it.
How much does an ounce weigh?
How much does a troy ounce of gold weigh? In grams in ancient Rome, its weight was 27.288.After the disappearance of the Roman Empire, there was no single standard for minting bronze coins, and therefore an ounce somewhat lost its infallibility. Her weight in different areas began to differ markedly. And this, in turn, became the subject of a dispute between the buyer and seller. The introduction of the metric system of units allowed us to determine how much a troy ounce of gold weighs in grams. Today, one ounce weighs 31.1034768 grams.
Purity standards or how many precious metals are in valuable coins?
Today, an ounce is the main measure in the trading of precious metals: it measures the weight of investment or weight coins (gold, silver, palladium and platinum) issued by central banks.
What is the current ratio of "USD - troy ounce"? For example, in the USA, coins were made of gold weighing 1/10 troy ounce, corresponding to a face value of $ 5; 25 dollars corresponded to a coin weighing ½ troy ounce, 50 dollars corresponded to a coin weighing 1 ounce. The classic option, no doubt, are the American "Eagles" - they contain one ounce of high-grade platinum.
In Russia, the weight of precious metal coins is indicated in grams, but the amount of precious metal is in fractions of a troy ounce. Gold weight coins "George the Victorious" par value of 50 rubles, issued by the Bank of Russia, has a weight of -7.89 grams, the weight of pure gold is at least 7.78 grams, which is ¼ troy ounce.
How much is an ounce?
What is a troy ounce? How many grams is in it? We have already dealt with this. It remains to find out how much an ounce is worth? How is the price of gold formed? There is a reliable and time-tested practice of fixing gold. This tradition began in September 1919 in London. September 3, 1939, in connection with the termination of the gold auction, the fixing procedure was discontinued. London bidding resumed on March 22, 1954, and has not undergone significant changes since then. Bidders are ready within a minute to answer the question of whether the price of gold is rising or falling. If the number of buyers exceeds the number of sellers, the initial price of gold rises. This procedure is carried out in London at the LBM auction twice a day: at 10.30 in the morning and three in the afternoon. It is believed that the price level for precious metals set by the London fixing, the fairest.
How much gold today?
The dynamics of changes in the price of gold is of great interest not only for those who have chosen it as the object of their investment. This is a kind of indicator of the state of the world economy. So, let’s analyze how the gold exchange rate has changed in recent years. In 1996, about $ 400 was given for one ounce of gold; in 2010-2011, the price of an ounce of gold rose to $ 1,300. At this time interval, the increase was almost 30%. According to analysts, 2015 was not so successful for the precious metals market. The cost of one ounce decreased from $ 1,000 recorded in 2014 to $ 840 in 2015. And in 2016 there are quite convincing prerequisites for the growth of prices for yellow metal.
Finally
If you finally decided to invest in physical gold, the ideal solution would be to purchase gold bars in one of the state banking institutions. If you make a transaction on the Internet - be vigilant. The fact is that there are two varieties of an ounce: a troy ounce and an ounce of overdup. The substitution of concepts with more than one entrepreneur played a cruel joke. A troy ounce of gold in grams is almost 9.7% heavier. Have a good investment.
