Back in the 20th century, this precious metal had a special status, as it was actively used in the global financial system. Until 1944, calculations were made based on the “gold standard”. He assumed that any monetary unit, at the request of an interested person, could be exchanged for a certain amount of this metal.
The “gold standard” was actively used in settlements between states: the exchange rate was determined as the ratio of these currencies to a unit mass of gold.
In 1944, the Bretton Woods Agreement was concluded, according to which states abandoned the application of the “gold standard”. The cost of the precious metal for settlements was fixed in US dollars – $35 per troy ounce.
Other exchange rates of the national currencies of the countries participating in the agreement were also tied to the American currency. At the same time, the rate was manageable: its fluctuations were kept within 1%, but managed devaluations and revaluations were also allowed.
The Bretton Woods system was used until 1976 when it was replaced by the Jamaican Monetary System. The latter is based on the fact that the exchange rate is not regulated, but is determined by the market, that is, it is determined based on a balance of supply and demand.
This system is used in the world and at present. Under the Jamaican currency system, gold does not affect exchange rates. Currently, it is a common exchange commodity.
Before analyzing the dynamics of gold prices, it is necessary to understand the ways of investing in it. You can buy this precious metal through:
- opening an unallocated metal account;
- purchase of coins or bullion;
- buying gold on the stock exchange.
Some experts call the purchase of jewelry and ornaments a way of investment. However, it is difficult to share this approach, because after wearing such products lose their value, which makes it unrealistic to earn money on resale.
Impersonal metal account
OMS involves the purchase of a certain amount of gold from a bank by opening a special account. There is no physical transfer of gold. The return on investment is formed depending on exchange rate fluctuations. Moreover, it is necessary to take into account both fluctuations in the price of gold and the exchange rate of the ruble against the dollar. Impersonal metal accounts can be opened for an indefinite period, or for a specific period.
Gold coins and bars
Ingots can be bought both at the bank, at the stock exchange, and from private individuals. Of these methods, buying at a bank is the safest and most convenient. There is a low entry threshold – from one gram. This is tangible gold that can be stored anywhere. There are many more disadvantages of gold bars:
- payment of value-added tax 20%;
- additional storage costs, otherwise there may be risks of damage;
- large bank commissions when buying and selling an asset.
Gold coins can be bought, in addition to banks and individuals, in specialized stores, or at auctions. Unlike bullion, they are not subject to VAT.
Some coins can rise in value not only due to the growth of gold but also due to demand from collectors.
However, the cons do not go away: these are bank commissions and the need for careful storage.