Current Gold Price

current-gold-priceThe current gold price is outrageous right now!  I remember growing up and always seeing gold coins on late night TV informercials and thinking how cool it was, but there was no way I was going to pay something like $100 an ounce!  Are you crazy?  Fast forward 25 years and I’m messing around on forums on the internet and on one of these forums there is this guy who is all about gold for some reason.  He’s yelling for everyone to go ahead and invest in gold.  He said put at least half of your portfolio in gold.

Of course, everyone thought he was nuts.  I was telling my boss at work about this.  He’s a pretty wise finance guy, owning oil fields and business and investing in many types of funds.  He says he’s personally have no more than 5% of his money in gold.  I didn’t know one way or the other.

How the Current Gold Price Works

I did understand one thing.  People talk about gold prices going up and down, but that’s now quite the truth.  What it really boils down to is that the currency that gold is being measured in is going up and down.  For instance, if gold goes up in worth by $50 then what that really means is the value of the currency, in our case dollars, has gone down by the same amount.

So as I saw gold start creeping up, I understood that our currency was suffering.  My boss still said “no more than 5% in gold!” He later reported to me as having lost hundreds of thousands of dollars in stocks and other commodities, where as if he had put his money in gold he’d have made far more than hundreds of thousands.  Gold went through the roof in the past few years!

What is the Current Gold Price?

At the time of writing this, in early 2012, gold is still being measured by the cost per ounce.  So how much is one ounce of gold worth these days?  In 2011 gold actually closed at some points over $1,900!  Today, it is just under $1,650!  Holy cow!  Imagine going out for a weekend of gold panning and you manage to get lucky, find a nice little placer deposit that collected a good half an ounce?  Then  you panned another half an ounce out in various other places.  You go home and weight it and you are sitting on $1,650 worth of gold!

I keep thinking back to these guys on Gold Rush: Alaska hoping to find many millions worth of gold out in the Alaskan gold claim.  They probably will do it, because gold is worth so much right now it won’t take much!  Best of luck to them!  I hope the current gold price continues to rise for all of us.

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