A general rule is to limit gold to no more than 5% to 10% of your portfolio. Depending on your situation and your risk tolerance, you may be more comfortable with a larger or smaller share of gold in your portfolio. A troy ounce of gold equals 31.1 grams of gold, while a standard ounce weighs less, 28,349 grams. If you think that the slight difference between the two units of measurement will not significantly affect gold calculations, you are wrong.
In the book When Money Dies, by Adam Fergusson, he points out that Germany passed a law on February 14, 1924 called the “Third Tax Ordinance” that revalued existing mortgages at 15% of their original price of gold based on the price of gold (in German marks) on the exact day and year in which the mortgage originated. Gold traders prefer to use troy ounces to maintain consistency, but when it comes to small amounts of gold, some North American traders prefer grains and pennies. The first step in determining the “right” amount of wealth insurance needed to survive an exchange bankruptcy is to identify a realistic price of gold in dollars if it were based solely on the real supply of foreign exchange and the amount of gold held by the United States Treasury and global central banks. So how many grams are there in an ounce of gold? We have established that an ounce of gold equals 31.1 grams of gold, but this statement is only accurate when measuring a.
For example, American Eagle gold coins from the United States Mint contain 91.67% gold, but have a higher value than regular gold bars. Regular traders and investors who transact with smaller amounts of gold usually use 100 ounce gold bars because they are more manageable. You can legally circumvent these laws by buying gold in smaller quantities or by purchasing and storing your gold in safe havens, such as Switzerland or Liechtenstein. Finding a buyer for a 10-ounce gold bar can be tricky, but finding multiple buyers for ten 1-ounce gold bars is much easier.
This means that the dollar today is overvalued against gold by a similar amount and, therefore, anyone who buys gold TODAY buys it at a strong discount on its real value.