How much gold can $10,000 buy?

Gold has been a symbol of wealth and prosperity for centuries, and these days, it's also a popular choice for many investors who want to protect their assets or diversify their portfolios. That's because gold tends to perform inversely to traditional investing assets, like stocks, which makes it a great option for mitigating risk from other investments. And, the value of gold also tends to remain steady and grow over time, making it a good store of value, too. 

These types of gold investing benefits are a large part of why there's been an uptick in gold investing recently. Not only are more people investing in this precious metal, but even Costco is now selling gold bars to its members — and the demand is so high that the warehouse retailer has had a hard time keeping them stocked.

But while gold is a reliable store of value over the longer term, the price of gold can and will fluctuate in the short term. In turn, it's essential to understand how much gold you can buy with a specific amount of money, such as $10,000. 

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How much gold can $10,000 buy?

There are numerous ways to invest in gold, from buying gold bars and coins to investing in gold stocks or preparing for retirement with a gold IRA. Each one comes with its own price point, but in this article, we're looking at how much physical gold you can get with $10,000.

The price of physical gold is typically quoted per troy ounce, with one troy ounce equal to approximately 31.1 grams. But gold prices can fluctuate from one day to the next, so to determine how much gold $10,000 can buy, you need to check the current market price of gold.

The price of gold has fluctuated between about $1,800 to $2,000 per troy ounce recently, and the price of gold was $1,984.29 per troy ounce as of November 6, 2023. To determine how much gold $10,000 can buy at the current price, you can use the following formula:

• Amount of gold (in troy ounces) = Total investment amount / Gold price per troy ounce

For example, at the current market price of $1,984.29 per troy ounce, you can calculate as follows:

• Amount of gold = $10,000 / $1,984.29 ≈ 5.03 troy ounces

This means that with $10,000, you could purchase approximately 5.03 troy ounces of gold at the current price of $1,984.29 per troy ounce. 

Now let's calculate how much gold you'd be able to buy if the price is on the lower end of that spectrum. For example, if the current market price of gold is $1,800 per troy ounce, you would calculate as follows:

• Amount of gold = $10,000 / $1,800 = 5.56 troy ounces (approximately)

This means that with $10,000, you could purchase approximately 5.56 troy ounces of gold at a price of $1,800 per troy ounce.

It's important to keep in mind, though, that you may also incur transaction costs, such as dealer premiums or storage fees, which can slightly reduce the amount of gold you acquire if you want to limit your investment to $10,000 total.

Find out more about how to get started in gold investing here.

Factors that affect the price of gold

Because gold prices change from day to day, it may be helpful to understand the factors that affect the price of this precious metal. This information can come in handy when you're trying to get the most out of your investment. 

The factors that can impact gold's price include:

• Supply and demand: The basic economic principle of supply and demand plays a significant role in gold pricing. When demand for gold increases, prices tend to rise. Conversely, when demand decreases, prices can fall.
• Inflation: Gold is often considered a hedge against inflation, and its price tends to rise when the value of fiat currencies like the U.S. dollar declines. That's because investors turn to gold as a store of value in times of high inflation, which can drive up its price.
• Geopolitical events: Political instability, conflicts and other global events can impact the price of gold. Investors often flock to gold as a safe haven asset during uncertain times, causing its price to rise.
• Central bank policies: Decisions made by central banks, such as interest rate changes and quantitative easing, can influence the value of fiat currencies and, consequently, the price of gold.
• Speculative trading: Speculative trading in the futures and options markets can lead to short-term price volatility in gold.
• Mining output: Changes in gold mining output can also affect prices. A decrease in gold production can put upward pressure on prices, while an increase may have the opposite effect.

The bottom line

Investing in gold can be a prudent way to diversify your portfolio and protect your wealth. To determine how much gold $10,000 can buy, you'll need to check the current market price of gold and use the formula provided. Just remember that gold prices can be influenced by a variety of factors, so it's essential to stay informed about the economic and geopolitical developments that may impact the precious metal's value.