How high was the price of gold? Spot Gold hit $1500 USD per ounce and it seems there is still much room for it to go a little earlier.
The price of gold is determined by a number of different factors. Like any commodity, offers and demand plays a key role in the price of gold. When supply is tight and high demand, the price of gold increases. Conversely, when the offer is more abundant and demand not as large, the price of gold will tend to fall. In the world today, economy, gold is in high demand. Countries such as China and the India have accumulated large amounts of precious metal and helped lead the higher price.
Looking at the whole of the economy, gold represents stability in what is a very unstable economic environment. Troubled with Sterling recently declining Dollar made gold owner an attractive alternative to the holding of cash loses purchasing power he gets devalued due to certain market conditions.
The imbalance of imports and exports contributes to the value of the currencies of the world, but does not change the value of gold. However, in a country is assessed in the same amount in another country.
Inflation in different countries as well as in the world is a major factor which causes demand for gold rises and drives prices higher and higher. Because gold is a physical asset and has a limited amount of supply, it is not subject to the same as fluctuations in paper currency that can be printed at will by any country. More money is printed the less each unit is really useful. Therefore, holding an ounce of gold will always allow to buy the same amount of goods or services in today's economy, as it would have bought it 10 or 20 years ago. Which cannot be said of paper currency.
The world economy is still struggling. Countries such as the Ireland, the Greece and the Spain have all experienced serious financial problems and their debt ratings have declined. It is psychologically comforting during tough economic times and it seems that there will be many more difficult days to come. It is not too late to invest in gold.
Preserve your wealth, investing in gold coins. Popular exhibits include Krugerrands, American Eagles, Canadian Maple Philharmonic & Austrian.
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