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- The dollar is weak and getting weaker due to national economic policies which don't appear to have an end.
- Gold price appreciation makes up for lost interest, especially in a bull market.
- The last four years are the beginning of a major bull move similar to the 70's when gold moved from $38 to over $700.
- Central banks in several countries have stated their intent to increase their gold holdings instead of selling.
- All gold funds are in a long term uptrend with bullion, most recently setting new all-time highs.
- The trend of commodity prices to increase is relative to gold price increases.
- Worldwide gold production is not matching consumption. The price will go up with demand.
- Most gold consumption is done in India and China and their demand is increasing with their increase in national wealth.
- Several gold funds reached all-time highs in 2007 and are still trending upward.
- The short position held by hedged gold funds is being methodically reduced.
- U.S. government economic policies over the past decade have systematically projected the U.S. economy down a road with uncontrollable federal spending and an uncontrollably increasing trade deficits. Both will cause the dollar to lose in international value and will increase the price of alternative investments, such as gold.
- Compare the weight in grams or ounces of the nugget to the current spot price of gold. (There are 31.1 grams per troy oz). Nuggets do fetch more than raw melted gold due to its rarity in nugget form.
- Gold Weight:
- Remember, gold weight is most often listed in troy and metric values. The weight of gold can be measured in troy ounces, grams, or in penny weight. See chart below.
- Key weights to keep in mind:
- 1 oz. (troy) = 31.10 g (31.1 grams)
- 1 oz. (troy) = 20 dwt (20 penny weight)
- 1.55 grams = 1 dwt (1 penny weight)
- 1.0 grams = 15.43 gr (15.43 grains)
- Be sure you know the difference between a gram and a grain! Some unscrupulous sellers will intentionally mislead you by listing weights incorrectly with common abbreviations ("g" is for grams and "gr" is for grains). If you see a 10gr nugget selling for $470 on watch out - it should be more like $58.00! 10 GRAINS is equal to just 0.479 GRAMS. Remember it takes 15.43 grains (gr) to make just one gram (g) of gold. And there are 31.1 grams to one troy ounce.
- Gold nuggets are valued differently than raw gold and gold in coin form. When evaluating natural gold consider several factors. Gold may be valued on: weight, rarity, physical dimensions, shine, brightness or lustre, purity, origin, and whether the nugget is considered collector or specimen grade.
- DETERMINING FAIR VALUE: Gold Weight and Color: for an average quality nugget weight and color are your best bets for determining value. Look for bright and shiny gold - if dark it may contain a high amount of copper or other less minerals and metals. Pure gold looks just as you would expect.
