How the economy can have a direct influence on the price of gold

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.

View the original article here

Investing in silver as money cash price increases

The value of money has exploded its price cash pleased money in three decades. So, what are the prospects for the prize money, the preferred profit strategies or parts of profit for the rest of the year? It depends on which expert you're talking about.

The silver per ounce price increased above $42.00 mid-April, a year 31 high. This is an increase of 32% for the year so far and more than doubled since last September. The question many are asking is where it goes from here, and how to position themselves?

The consensus of many professionals of the market is that the prospects for long-term money are always optimistic. But it is currently on purchased and a withdrawal may even at $30.00 may occur. Most seem to agree that silver is likely to run to a maximum of $50 at the end of the year, the bearish Outlook says that it can take 3 to 5 years to get to $50.00.

If you look at the ratio of gold silver history you will find lies between 16: 1 and10: 1. 16: 1 And an amount of $1,500 current price of gold would indicate silver is less appreciated and should be trading near $92 an ounce. Why not we at this level? However it is true or silver is sous-prix or the world has changed. I believe that it is the later.

Many of the existing investors are looking for ingots of silver as a cover of inflation, but it is really a part of history. Not only silver is undervalued versus gold, but silver is a hedge with a kicker industrial. The money is used in thousands of industrial processes and is in high demand. More than half of the money produced today becomes accustomed to buying industry. We have all seen the uses of money grow continuously in this era of electronics. Thirty years ago, that we have had a year twenty supply silver above ground for the industry. Today the supply is reduced to supply within a year.

Something is wrong here and the only explanation that I see is a kind of Government or manipulation of the Central Bank is happening for many years. This could be good for investors for money because when the corrections take place, they inevitably more draw mark balance by a considerable amount.

There is another issue of gold and silver prices driving good now that many are not aware of: gold and silver are in high demand in nation States. It's a game changer. The directory of the CPM or reported total overall number of ounces of precious metals purchased or sold by nations around the world. Since the beginning of the 1980s, sell Governments. In 2008, it was expected that 5 million ounces would be sold in 2009. CPM 2010 Yearbook shows or a net purchase of 15 million ounces. It is an indication that Governments around the world are beginning to be wary of the value of the dollar. And this does not include countries such as the Iran and China which does not declare their actions, but which are rumour to buy large quantities.

Finally, silver coins have become the "common human metal". If you are looking to buy precious metals and your choice is between $1500 an ounce of gold and silver at 40 dollars an ounce, most people go for $40 because it appears to be a boon.

If the money graph showed that money has moved too far too fast? Some are expecting a major attraction in price before continuing to test the 1980 record price of $50. Others watch the record price of 1980 and the price of inflation adjustment and see that the prize money cash must go to $130 an ounce to equal this record. Therefore, there could be a long way to go yet, without even taking into account the global financial situation today. I do not plan sell any silver bars or pieces of precious silver of if early.

View the original article here