The Significance of the 1000 Gram Gold Price

The 1000-gram gold price represents the price of 1 kg of gold. Traditionally, gold weight is represented by Troy ounces, with 1 Troy ounce equal to 31.10 grams. Today, the 1000-gram gold price is around £60,000.

How many Troy ounces in 1kg of gold

There are 32.15 Troy ounces in 1kg of gold. At the time of this post, July 2024, the price of gold has reached £1879 /oz. This equates to 1000 grams of gold being equal in price to over £60,000.

But I don’t think a kilo of jewellery can be sold for this same price. The above price represents the price of 24-carat gold. As such, buyers choose either ingots or coins as the most popular physical form when purchasing gold.

Most scrap gold contains impurities added to gold for the production of items such as jewellery. Gold purchased as bullion is sold in pure form with no additional alloys added. For example gold items stamped 375 represent only 37.5% pure gold.

Why is the price of gold rising in 2024?

The price of gold will continue to rise in 2024 for various reasons. Firstly, quantitative easing in recent years has added. In 2020 alone, the US Federal Reserve printed more than $3 trillion. As a result, the value of items increases. Or, more correctly, the value of currency decreases, and material goods become more expensive. For this reason, gold is just catching up and its value correcting.

Additional factors include World conflicts, such as the Ukraine War and conflicts between Israel and Palestine. During times of threat, gold becomes a safe haven for investors.

A third factor includes the gold cycle. During the course of a year, we see similar patterns appearing and over longer stretches of time. For example, this year, we are seeing similar patterns to 2006.

Interest rates also play a significant role. When interest rates rise, banks pay investors a higher return for their investments. However, when interest rates fall, investors consider alternative options for higher returns. Currently gold outperforms many other types of investment.

Finally, there is the unquestionable factor of wealth insurance. Over long periods of time, gold continues to perform. As such, it provides a safe haven for investors—far more reliable than any currency. Look at the chart below, which shows the price of gold over 20 years.

20 years of gold price up to the year 2024.

Why is the 1000-gram gold price significant?

The significance of the 1kg gold price is probably due to the weight and cost providing a comprehensive metric benchmark for many people. Fewer buyers understand or relate to Troy ounces. Instead, Kilograms provide a modern way to relate weight to price.