The price of gold today is impacted less by supply and demand than in the past. With the introduction of gold bullion backed Exchange Traded Funds (ETFs) in 2004, in the United States (and earlier in Australia) investment demand for gold skyrocketed. Investors reacting to world events and concerns about the stability of world currencies are the primary drivers of the price of gold today through investment in bullion, gold kilo bars (pictured) and gold Exchange Traded Funds like the SPDR Gold Trust.
Some analysts remind consumers that even though the price of gold today appears much higher than it was in the 1980’s when it was priced in the eight hundreds per troy ounce, when adjusted for inflation we still have not topped that earlier apex. According to an article by David Leonhardt in the November 9, 2010 NY Times, “The actual record was set 30 years ago, when the price of gold, in today’s dollars, hit $2,387, or 71 percent higher than it closed on Tuesday.”
The price of gold today has been holding steadily at over $1,000 per troy ounce since early October of 2009 and reached $1,421 on November 9th, 2010. Most recently, gold climbed into the high $1800’s following news of more economic turmoil in Europe. These high prices drive up the costs of finished goods containing gold such as jewelry and electronics. But, consumers selling unwanted gold jewelry, dental gold and gold bullion to GoldFellow® have benefited from the higher scrap prices driven by the high price of gold today. GoldFellow® publishes the prices it pays for scrap gold daily on its website and provides a gold price estimator for consumers to estimate the scrap value of their gold jewelry.