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Normally, during a recession, people lose confidence in the currency and instead try to secure their investments by purchasing gold. This drives up the gold prices. When the value of stocks, shares, real estate and money begin to fall, people scramble to convert their monetary savings into gold. Gold has long been considered as a safe investment choice and does not lose value.
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What are the predictions for gold commodity prices in the future?
It has been know our economic struggle in 2012 and up to 7/10/2013 Gold has been constantly falling, But overseer`s believe if we can find our way out of this economic crisis gold will elevate in price.
The gold price is impacted by what?
The price of gold is ultimately driven by the Supply & Demand theory. When the demand for gold exceeds the supply the price goes up. Yearly 2500 tonnes of gold is mined all around the world and the demand for gold is approximately 3500 tonnes. This means the demand for gold is a 1000 tonnes more than what is being mined all over the world. This translates into a steady increase in demand as well as the price of gold. In general gold becomes a very favorable investment option during some situations like Economic Crisis, Depression, Recession etc. During these periods the returns on investment on other forms of investments like Stocks, Mutual funds, Real estate etc is negative. During such times the demand for gold goes up heavily. People take out their investment in other avenues out of fear of loss and invest into safer avenues like Gold or bank deposits. This causes the price of gold to go up drastically. The price of gold per 10 grams has gone up by nearly Rs. 1000/- in the last 6 months.
What causes the price of gold per ounce to fluctuate so often?
The price of gold per ounce fluctuates due to various factors, including economic conditions, geopolitical events, inflation, interest rates, and investor sentiment, influencing supply and demand dynamics in the market.
Is gold is an inferior good?
Gold prices rise by an incredible amount during a recession, a recent example is in the 2008 economic crisis, where gold price skyrocketed in a few short years. Why? well, during a recession like the recent one, people tend to not trust currencies and look for physical goods which can be stored without fear of falling in value (gold has been a precious metal for thousands of years). During 08 many countries borrowed money and as a result it created the possibility of monetary inflation ontop of the current level of inflation in order to repay the debts, as a result many people turned to gold and other precious metals for safety. Furthermore, during a recession people tend to not trust banks with money, so having a physical item you can trade for is of much more value. Proof: goldprice DOT org/ With reference to the law of demand, an increase in prices mean an increase in the quantity demanded
Is it better to buy gold now or sell gold now?
Gold has been money for centuries, long before paper money came into existence. With the world economy "shaky" and the US economy in a near recession, the value of gold will probably continue to increase. Therefore at this point in time, buying gold would be best. As the U.S. dollar and other currencies continues to decline, gold has increased in value. In 2008 it hit an all-time high and today is less than $100 from that price. (5/22/09) In 1980, gold was priced at $850 an ounce and today it is just about $100 more than that. The price of gold has been suppressed with the selling of gold by Central Banks. This selling has ended. With all of the spending that our government is doing, it is doing nothing but adding debt to debt. This is economic madness and doesn't solve anything. As such, gold will continue to climb in price until government is restrained. I wrote a White Paper that explains more about investing in gold. You can download it for free at www.fedupbook.com/whitepaper
How gold price decided?
the stock market. if there is more found in one day, or there is an economic crash, the price is lower, less found or an economic boom price is up. try this site its useful http://gold-price-blog.info/
Is gold the most expensive?
Gold can be the most expensive, but it all depends on the economy. Even the price of gold CAN drop because of the economy. If the value of money decreases the value of gold increases because no one can afford it. Since we are currently in a recession, the price of gold is at its all time high.
Which is known as liquid gold?
Petroleum is called liquid gold because of its high price and value and its economic "need".
What are the predictions for gold commodity prices in the future?
It has been know our economic struggle in 2012 and up to 7/10/2013 Gold has been constantly falling, But overseer`s believe if we can find our way out of this economic crisis gold will elevate in price.
Does coin value in liberty nickels affected by gold or silver prices?
In my opinion, in general no. Supply and demand drive the price.
How do you figure out the price of gold?
The pure gold is 24k, if you are buying 14k gold multiply pure gold price by 14/24=0.5833. Let us say pure gold is $1000 per ounce, 14k gold price 1000X0.5833=583.30.
Factors and Variables when Calculating the Price of Gold?
Gold is considered one to be one of the oldest monetary exchanges in the world. Gold is still one of the world's most traded commodity, even after the collapse of the Gold Standard in the 1970s. Markets influence the price of gold per ounce, which can often make gold a worthy investment. Gold's price varies by a number of factors. An ounce of gold is usually controlled by a fluctuating price index established by gold commodity markets. Gold is not heavily mined anymore, so the rarity of gold is accounted in its ounce price calculation. Another factor in gold's price per ounce is the carat quality of the gold. Carats measure the purity of the gold. Gold, as an element is far too soft as a solid to be used for monetary trading. Hence, most items made of gold are melted with other elements, like copper, to enhance the physical texture and integrity of the item. The more pure gold per ounce in a gold product, the more expensive the object will be. Typically, gold becomes more expensive during recessions and economic stagnation. This is because the currencies affected by the economic slow down begin to be viewed weakly on the international market. Therefore, more investors invest their money into gold. This does not mean gold would not be expensive during a healthy economy, but because of this investor factor, some gold traders tell consumers to invest in gold when the economy looks bad. By doing this, many investors could end up with a higher return for their gold purchase. This is why selling gold during hard economic times can actually be a somewhat lucrative venture if the price per ounce is high enough. However, one of the factors behind a gold price per ounce calculation include whether or not a customer is dealing with a reputable gold trader. A good, reputable gold trader will sell or buy gold to a customer based upon an accurate calculation of the market price. Usually, consumer websites or word of mouth opinions about a gold dealer can show consumers if the gold trader is not selling or buying gold at the price per ounce rate that day.
The gold price is impacted by what?
The price of gold is ultimately driven by the Supply & Demand theory. When the demand for gold exceeds the supply the price goes up. Yearly 2500 tonnes of gold is mined all around the world and the demand for gold is approximately 3500 tonnes. This means the demand for gold is a 1000 tonnes more than what is being mined all over the world. This translates into a steady increase in demand as well as the price of gold. In general gold becomes a very favorable investment option during some situations like Economic Crisis, Depression, Recession etc. During these periods the returns on investment on other forms of investments like Stocks, Mutual funds, Real estate etc is negative. During such times the demand for gold goes up heavily. People take out their investment in other avenues out of fear of loss and invest into safer avenues like Gold or bank deposits. This causes the price of gold to go up drastically. The price of gold per 10 grams has gone up by nearly Rs. 1000/- in the last 6 months.
What causes the price of gold per ounce to fluctuate so often?
The price of gold per ounce fluctuates due to various factors, including economic conditions, geopolitical events, inflation, interest rates, and investor sentiment, influencing supply and demand dynamics in the market.
Did abandoning the Gold Standard lead to the current recession?
No, excessive asset prices and inadequate financial regulation led to the current recession. Abandoning the gold standard got countries out of a far worse depression in the 1930s.
What are the attributes of gold?
The attributes of yellow gold are to hostage the minds of the people in the gold game, to raise and decrease the world price market to control the dollars in the world economic market, and to not employ the new generation's people!
Is gold is an inferior good?
Gold prices rise by an incredible amount during a recession, a recent example is in the 2008 economic crisis, where gold price skyrocketed in a few short years. Why? well, during a recession like the recent one, people tend to not trust currencies and look for physical goods which can be stored without fear of falling in value (gold has been a precious metal for thousands of years). During 08 many countries borrowed money and as a result it created the possibility of monetary inflation ontop of the current level of inflation in order to repay the debts, as a result many people turned to gold and other precious metals for safety. Furthermore, during a recession people tend to not trust banks with money, so having a physical item you can trade for is of much more value. Proof: goldprice DOT org/ With reference to the law of demand, an increase in prices mean an increase in the quantity demanded
