Audio By Carbonatix
The price of a bar of gold is worth a million dollars for the first time, thanks to soaring prices for the precious metal.
The price of spot gold reached more than $2,500 per troy ounce Friday, hitting a record high. The average gold bar weighs 400 troy ounces – which, when you do the math, hits a million dollars.
Bloomberg News first reported the gold bar price.
Spot gold prices have shot up more than 20% year to date. Higher gold prices can be a sign that investors expect the Federal Reserve to cut its benchmark interest rate soon. Central banks led by China are also buying up gold to ease reliance on US dollars.
Central banks – and investors – see the precious metal as a long-term, reliable store of value during periods of economic turmoil. That’s because when interest rates fall, gold prices tend to rise, as bullion becomes more appealing than bonds.
Investors also regard gold as a hedge against inflation, betting bullion will retain its value when prices rise.
Of course, not every gold bar weighs exactly 400 ounces. And the United States Gold Bureau said that gold bars are usually traded internationally by central banks and bullion dealers, not by individual people.
Latest Stories
-
Mrs Emily Mamle Abotsi
7 minutes -
TOR can refine Ghana’s local crude – Corporate Affairs Officer clarifies
7 minutes -
DJ Spinall, Davido, King Promise, Wande Coal and more light up Detty Rave 7 in AccraÂ
15 minutes -
AIG partners PAJ Foundation to reward outstanding performers
20 minutes -
 Detty Rave 7 shuts down Accra as Mr Eazi pledges $2m investmentÂ
29 minutes -
Ho mosque shooting incident: Police release 14 suspects from custody
32 minutes -
Firecrackers, knockouts still illegal ahead of 31st night crossovers – Small Arms Commission
34 minutes -
Thousands expected at ICGC Christ Temple East for life-changing Crossover Service
37 minutes -
IMF support goes beyond loans to boost Ghana’s economic credibility – Kobby Amoah
41 minutes -
IES hails TOR’s return to crude oil refining after years of shutdown
46 minutes -
Thousands of guns retrieved under amnesty with 15 days to deadline – Small Arms Commission
47 minutes -
AfroFuture Festival Day One delivers late-night thrills as Asake shuts down the stage
49 minutes -
Sign 5 new players or forget about league title – Aduana coach Cioarba Aristica tells management
51 minutes -
Adom FM’s Strictly Highlife slated for Jan. 1 to celebrate authentic Ghanaian sound
54 minutes -
Part 2: Key Observations on the Constitutional Review Committee Report Submitted to President Mahama
56 minutes
