Gold and silver prices


Published on Find out what affects Gold and Silver prices. Did you know that despite the worst recession Gold and Silver prices actually peaked! Discover why Gold and Silver are the best investment choices at any given time.

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Gold and silver prices

  1. 1. Gold and Silver Prices<br />What your broker is not telling you: What you should know before you invest<br />
  2. 2. Intro<br />Gold and Silver are key investments both in times of economic turmoil or stability<br />Prices have steadily risen since the mid nineties<br />Gold and Silver prices went against the world recession and actually peaked during the 2008 crisis.<br />So how come gold and silver have defended their position for so long<br />
  3. 3. Influential actors <br />Many factors affect gold and silver prices. I cover only 3.<br />Supply and Demand<br />Political Economy<br />The value of US dollar<br />
  4. 4. 1. Supply and Demand<br />A pure economic principle<br />Gold and silver supply does not grow as much as demand<br />Less gold=> more demand/competition =>high price<br />Where is demand coming from?<br />many people know the value in investing in gold or silver therefore look for it hence price increases<br />Many people want to hedge their cash/funds against uncertainties.<br />
  5. 5. 2. Political Economy/Politics<br />Wars, bulging deficits, turmoil bring uncertainty in markets<br />People rush to buy gold and silver as they perceive these to be stable as compared to cash e.g person from Iraq can take their gold and sell in the States but cant do so with their Dinar<br />This pushes demand and we are back to our supply and demand argument<br />With so much uncertainty across the globe, price will always be high<br />
  6. 6. 3. Value of the US Dollar<br />US dollar is used to value most prices of commodities…an act called pegging the price<br />If the value of the dollar goes down, then it becomes cheaper to buy these metals including gold and silver<br />This pushes demand and we are back to our supply and demand argument<br />
  7. 7. Conclusion<br />As an investor, its crucial to understand what affects the price of your investments<br />Gold & Silver prices have steadily held their position or even performed better<br />Supply and demand brought about by geo-political factors and the actual value of the US$ have been central to the price of silver and gold<br />