Yep, gold is in the news again with record prices.
What isn't so apparent is the changes that affect gold in production. Back about 1950, ore generally produced about 12 grams of gold per ton. That number has dropped to about 3 grams per ton in most mining areas, and even the quality of the ore quality had declined.
The picture above shows the most sought after gold bar for investment, the 100-gram bar. It will just about fit in the palm of your hand, and costs a cool $3,500.
Foreign governments continue to buy gold over US Dollars for safe investments. The Reserve Bank of India just bought 220 tons of gold from the IMF (International Monetaru Fund) for $6.7 billion. Sri Lanka recently disclosed it too is buying gold, and of course we know the Chinese are investing heavily in gold.
Gold has been around as a stable investment for over 6,000 years, while other monetary forms have come and gone as governments rise and topple. Despite the increased value of gold, if we adjust the price for inflation it will have to top $1885 to set an all-time record high.
Meanwhile, be very cautious if you choose to sell your scrap gold. Many folks are getting a mere fraction of the real value as fast-talking salesmen make their pitch.
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