subject: Gold On The Financial Market [print this page] A financial crisis, such as the one that started in 2008, triggers distrust among those who participate in the various existing financial environments. This uncertainty triggers market volatility. As an immediate result, every instrument used for measuring wealth can change its status and solvency is the key problem for companies struggling to survive on the market.
This is the type of situation where everyone focuses on survival and the need for conservation becomes more acute. The source of the financial crisis is money and its inaccessibility transforms it in the sore point of the system. This is why money becomes the interest of those who wish to invest in commodities with an element of risk.
Recession causes values to disappear faster that they are created. This leads to an environment of shifting values, in which people start searching for tangible assets. On the financial market, gold is a fundamental standard that becomes attractive in times of volatility. Along with other metals and objects, gold starts looking appealing, basically because rare things are usually more expensive.
This yellow metal has been the essential instrument for commercial exchange ever since Antiquity. The fact that the term treasury comes from treasure is directly related to gold. And this is not surprising considering the fact that gold deposits were a measure of wealth. Everybody strived to collect gold and this has been happening for centuries. Gold was the reason for battles, wars and other major events in world history.
The step forward to banknotes happened on a large scale only in the nineteenth century, but their value was still established according to their convertibility in gold. After the First World War rich countries tried to control volatile markets by creating monetary policies. These were their first attempts to protect themselves from economic imbalances.
Gold is still a reliable means of making a name on the financial market. Whether investors buy gold bars or Baird gold, it could be a recipe for success because market mechanisms cause its price to increase constantly, while following the major trends in economic development. One of the reasons might be that the quantity of gold on the market does not chance dramatically on a short period of time.
