Factors affecting the price of gold?

The mess of gold price leaded by Japan

Like any other commodity, the price of gold in the end determined by supply and demand. And yet, there is a recipe distinguish gold from any other commodity, and gold is not consumed and does not end, but rather moves from hand to hand for that any gold has been produced by the still largely exists and can be added to the market at any time to correct the price.

At the end of 2006, a total of gold has been produced throughout history about 158,000 tons equivalent to 20.2 cubic meters along the rib.

Taking into consideration the vast amount of gold stocks compared to the annual production, the price of gold is affected the most psychological factors as well as influenced by annual production. According to bricks of the World Gold Council, an annual production of about 2,500 tons.

Central banks and the International Monetary Fund play an important role in determining the price of gold. by the end of 2004, central banks swallowed property and official organizations about 19% of gold above the earth’s surface.

The Washington Convention, which went back to the September 1999 identified gold sales by its members (Europe and the United States, Japan and Australia, and the Bank for International Settlements and International Monetary Fund) to less than 400 tons per year.

Bank failure: When people begin to feel the fear of the bankruptcy of the bank, they begin to withdraw their money, leading to increase the likelihood of the bank and find that eventually lead to bankruptcy of the real. In such circumstances, increases the demand for gold as an alternative for Retention money.

Low interest rate: If the return on bonds, equities and real estate is not sufficient to compensate for risk and inflation, increasing the demand for gold and other alternative investments.

Like any other commodity, the price of gold in the end determined by supply and demand. And yet, there is a recipe distinguish gold from any other commodity, and gold is not consumed and does not end, but rather moves from hand to hand for that any gold has been produced by the still largely exists and can be added to the market at any time to correct the price.

At the end of 2006, a total of gold has been produced throughout history about 158.000 tons equivalent to 20.2 cubic meters along the rib.

Taking into consideration the vast amount of gold stocks compared to the annual production, the price of gold is affected the most psychological factors as well as influenced by annual production. According to bricks of the World Gold Council, an annual production of about 2,500 tons.

Central banks and the International Monetary Fund play an important role in determining the price of gold. by the end of 2004, central banks swallowed property and official organizations about 19% of gold above the earth’s surface.

The Washington Convention, which went back to the September 1999 identified gold sales by its members (Europe and the United States, Japan and Australia, and the Bank for International Settlements and International Monetary Fund) to less than 400 tons per year.

Bank failure: When people begin to feel the fear of the bankruptcy of the bank, they begin to withdraw their money, leading to increase the likelihood of the bank and find that eventually lead to bankruptcy of the real. In such circumstances, increases the demand for gold as an alternative for Retention money.

Low interest rate: If the return on bonds, equities and real estate is not sufficient to compensate for risk and inflation, increasing the demand for gold and other alternative investments.

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  • Machani

    I am not satisfied with this explanation. Please explain me in detail. I heard that dollar value also relates to gold price.

    • wait us for more

      • Aagrawal

        Instead anpparieg out of nowhere and throwing in game changers like correlation is not causation , why don’t you read my posts and respond to them?

  • Dave

    good grief! if you’re going to write a report and publish it, can we at least have it in “proper” English. half of it, I cant even read.

    “but rather moves from hand to hand for that any gold has been produced by the still largely exists”

    That’s not even a sentence. Whoever wrote this needs to read it through and start again. Terribly unprofessional.