Gold is considered one of the oldest forms of investment available, but a lot of people do not understand how to determine the price of gold. Whether you want to diversify your assets or concern of economic recession it is important to understand the factors that affect gold prices.
In a time when the values of gold standard monetary system under the old paper equal to the specified value of the value of gold, where individuals can replace paper currency with another gold. The finished piece the times on August 15, 1971 when given the freedom of governments to print a lot of money and paper as they see fit.
Today the price of gold is set by the gold mining stocks are five members by meeting twice a day in London around 10:30 GMT and 15:00 GMT to be determining the value of today’s opening price of gold, according to market gold and gold products all over the world
People can invest in gold directly through the possession of gold bullion or indirectly, such as certificates or shares. As is the case with most other forms of investment gold, it is influenced by market supply and demand When oversupply and low demand for gold prices fall and vice versa lack of supply and raising the demand for gold push gold prices higher. Fortunately for thousands of gold extracted Alsensn still exists to this day.
In times of national crisis such as war or serious disaster, the price of gold tends to increase significantly as people begin to fear that their currency paper may not have a value and therefore turn to gold as they see gold as an asset constant can always be used to buy food and other necessities.
Another factor common to influence the high price of gold is a success in the real estate market. When there are low or negative returns on real estate sector, the demand for gold and other commodities are usually expected to increase.
Finally, the failure of banks during periods of crisis in the management of investment assets such as what happened during the Great Depression, when gold prices rose as a result of the failure of banks led by President Roosevelt to impose a ban on gold by ordinary citizens.