The price of gold climbed bit by bit through the year and finished 24% higher than when the year began. Starting the year at $874.50 per ounce (London fix), gold prices soared over the anticipated high of $1200 per ounce to hit a new high of $1226.60 per ounce on December 3.
From January to June, there was an ample increase of 10%. The 2nd half of 2009 more than doubled that growth rate during the 1st half of the year. The substantial increase was partly due to an unexpected surge in prices in November, driven be the Indian Central Bank’s purchase of 200 tons of gold from the International Monetary Fund (IMF). China and Russia also made significant gold purchases in 2009 – causing speculation that other large banks may follow suit – shifting a portion of their holdings away from the US dollar and into gold. While this is sure to fuel the rise in the price of gold, it is also an indicator of the consumers’ negative sentiments toward the stability and value of the US dollar.
With the cumulative average gold price for 2009 just over $972 per ounce, the year proved to be worth its weight in gold. In terms of pounds, that would be $28,476,924.08!
1 avoirdupois pound = 14.583 troy ounces
2009 pounds x 14.583 ounces = 29297.247 troy ounces
29297.247 troy ounces x $972 = $28,476,924.08