How high can the price of gold go? Spot Gold has hit $1500 USD per ounce and it appears that there is still plenty of room for it to move quite a bit higher.
The price of gold is determined by a number of different factors. Like any other commodity, supply and demand plays a key role in the price of gold. When the supply is tight and the demand is great, the price of gold will rise. Conversely, when the supply is more abundant and the demand not as great, the price of gold will tend to drop. In today's world wide economy, gold is in high demand. Countries like China and India have been accumulating large amounts of the precious metal and have helped to drive the price higher.
Looking at the economy as a whole, gold represents stability in what is a very unstable economic environment. The troubled U.S. Dollar along with the recently declining British Pound have made owning gold an attractive alternative to holding cash money that loses purchasing power as it gets devalued due to certain market conditions.
The imbalance of imports and exports contributes to the value of the world's currencies, but, does not change the value of gold. Gold in one country is valued at the same amount in any other country.
Inflation in individual countries as well as worldwide is a major factor that causes the demand for gold to rise and drives the price higher and higher. Because gold is a physical asset and has a limited amount of supply, it is not subject to the same fluctuations as paper money which can be printed at will by any country. The more money that is printed the less each unit is actually worth. Therefore, holding an ounce of gold will still allow one to buy the same amount of goods or services in today's economy as it would have bought 10 or 20 years ago. That can not be said of paper currency.
The worldwide economy is still struggling. Countries like Ireland, Greece and Spain have all been experiencing serious financial problems and their debt ratings have declined. Gold is psychologically comforting in tough economic times and it looks like there will be plenty of more difficult days ahead. It is not too late to invest in gold.
Preserve your wealth, invest in gold bullion coins. Popular coins include Krugerrands, American Eagles, Canadian Maples & Austrian Philharmonics.
J R TRADING PARTNERS LTD http://WWW.BULLIONUK.COM
Article Source: http://EzineArticles.com/?expert=Oscar_Heath
Article Source: http://EzineArticles.com/6196997
The price of gold is determined by a number of different factors. Like any other commodity, supply and demand plays a key role in the price of gold. When the supply is tight and the demand is great, the price of gold will rise. Conversely, when the supply is more abundant and the demand not as great, the price of gold will tend to drop. In today's world wide economy, gold is in high demand. Countries like China and India have been accumulating large amounts of the precious metal and have helped to drive the price higher.
Looking at the economy as a whole, gold represents stability in what is a very unstable economic environment. The troubled U.S. Dollar along with the recently declining British Pound have made owning gold an attractive alternative to holding cash money that loses purchasing power as it gets devalued due to certain market conditions.
The imbalance of imports and exports contributes to the value of the world's currencies, but, does not change the value of gold. Gold in one country is valued at the same amount in any other country.
Inflation in individual countries as well as worldwide is a major factor that causes the demand for gold to rise and drives the price higher and higher. Because gold is a physical asset and has a limited amount of supply, it is not subject to the same fluctuations as paper money which can be printed at will by any country. The more money that is printed the less each unit is actually worth. Therefore, holding an ounce of gold will still allow one to buy the same amount of goods or services in today's economy as it would have bought 10 or 20 years ago. That can not be said of paper currency.
The worldwide economy is still struggling. Countries like Ireland, Greece and Spain have all been experiencing serious financial problems and their debt ratings have declined. Gold is psychologically comforting in tough economic times and it looks like there will be plenty of more difficult days ahead. It is not too late to invest in gold.
Preserve your wealth, invest in gold bullion coins. Popular coins include Krugerrands, American Eagles, Canadian Maples & Austrian Philharmonics.
J R TRADING PARTNERS LTD http://WWW.BULLIONUK.COM
Article Source: http://EzineArticles.com/?expert=Oscar_Heath
Article Source: http://EzineArticles.com/6196997
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