subject: The Price Of Gold Is Surging Up [print this page] You've probably heard how well the gold is doing nowadays. How its price goes upper and upper, the buyers want more and the sums of money invested in it get greater and greater. As for the trust people put in gold, what else is there to inspire more confidence considering the ongoing crisis? The real estate business, the stock, the bond markets? God forbid.
Speaking of Great Britain, the gold spot price is set here, twice a day, five days a week. There are five members at the London Gold Market Fixing Ltd. who set the value of gold. The first gold fixing was made in 1919, with the participation of the five major gold bullion traders of the time.
Who sets the price? The five members of the London Gold Market Fixing Ltd. determine it twice a day. The spot gold price is initially set in British Pounds, then translated into US dollars and Euros. It is the relation between supply and demand that actually influences the price of gold bullion, which is adopted and transposed all over the world.
While some consider speculation together with demand and supply as main factors for the ups and downs of gold price, others argue that it is actually the inflation, the falling dollar and the loss of trust in the economy and the financial system altogether.
There are of course variants which suggest that the price is a result of hoarding and disposal primarily, while others put it on the account of investors' reorientation rather than on the annual production changes. Limitations concerning the dealing of gold are usually moderated by institutions such as the International Monetary Fund, the central banks and other official organizations.
Gold buyers are affected by this continuous growth of gold prices, yet it does not mean that it is not a good way to make money. Long-term investors and those who buy gold as a hobby can rest assured - say the advised ones - their gold will be much more expensive at least by the end of the year. The obvious scenario is for the troy ounce of gold to reach, if not go beyond - the price of $1400. Only speculators risk not gaining profit from one day to another.
Proving to be stronger than currencies and enhanced by inflation, the golden trend has only just begun; several constituents are building the every-day price of the gold. So, along with supply and demand, the clash of the markets - stock, capital, real estate and oil - lets everybody down but brings up the sparkly metal. And what can be better than something shiny and yellowy to prevent your money from being lost.
