Gold has increased in value significantly over the past decade, rising from $1843.60 per ounce in 2011 to over $1900 per ounce currently. This increase has been driven by financial and political crises that increase uncertainty and decrease confidence in fiat currencies. When stock markets and other assets fall, gold often rises as investors view it as a stable store of value. Major crises like the 9/11 attacks, the 2008 recession, European debt problems, and US debt downgrades have all contributed to rising gold prices by weakening currencies and increasing demand for a stable alternative. Political unrest and high inflation also typically cause investors to seek refuge in gold.
Why gold should be considered in an efficient portfolio to maximize the returns and minimize the risk? This ppt is able to answer this question to a great extent.
Why gold should be considered in an efficient portfolio to maximize the returns and minimize the risk? This ppt is able to answer this question to a great extent.
The Case for Gold: Overview on Gold as an InvestmentAurAriA
Overview on how to view Gold as a tangible asset and investment. This presentation reviews the effective ROI on Gold versus other instruments in the last several years. Presentation delivered by CEO , Laurent Mathiot.
A case study on how Harshad Mehta scammed the entire stock market. There are certain examples and history on how he played a role as a stockbroker.
The underlined and highlighted words can be googled to further more enhance your knowledge.
RBI issues SGB on behalf of the Government of India. Buy SGB online and earn a fixed interest of 2.50% per annum. No making charges and alternative of physical gold.
What is GOLD?
Information on Gold
Uses and demand
Gold in jewelry
Purity/Fineness
CHINA VS. INDIA
WHO IS BUYING GOLD JEWELLRY?
gold as an investment
Gold as Inflation Hedge
GETTING EXPOSED TO GOLD
Rothbard Model of Gold
Risks of Gold Pricing
Gold Fix ?
PROCESS of Price Determination
Gold Imports
FACTORS AFFECTING GOLD PRICE
Why India Has Stopped Importing Gold ?(P. Chidambaram)
The Case for Gold: Overview on Gold as an InvestmentAurAriA
Overview on how to view Gold as a tangible asset and investment. This presentation reviews the effective ROI on Gold versus other instruments in the last several years. Presentation delivered by CEO , Laurent Mathiot.
A case study on how Harshad Mehta scammed the entire stock market. There are certain examples and history on how he played a role as a stockbroker.
The underlined and highlighted words can be googled to further more enhance your knowledge.
RBI issues SGB on behalf of the Government of India. Buy SGB online and earn a fixed interest of 2.50% per annum. No making charges and alternative of physical gold.
What is GOLD?
Information on Gold
Uses and demand
Gold in jewelry
Purity/Fineness
CHINA VS. INDIA
WHO IS BUYING GOLD JEWELLRY?
gold as an investment
Gold as Inflation Hedge
GETTING EXPOSED TO GOLD
Rothbard Model of Gold
Risks of Gold Pricing
Gold Fix ?
PROCESS of Price Determination
Gold Imports
FACTORS AFFECTING GOLD PRICE
Why India Has Stopped Importing Gold ?(P. Chidambaram)
Buying gold in 2023 is a smart decision for long-term investors. Gold is a valuable asset that has consistently outperformed traditional investments, like stocks and bonds, over long periods of time. Gold is also a safe haven asset that can protect investors from the volatility of stock markets. Additionally, gold has been used as a hedge against inflation, and its purchasing power tends to remain stable even during times of economic uncertainty. Finally, gold has a low correlation to other asset classes, meaning its value is less likely to be affected by changes in the market.
Gold has held a unique fascination for humankind throughout history. Revered for its intrinsic beauty, rarity, and enduring worth, gold has been a symbol of wealth and prosperity for civilizations spanning the globe. In contemporary times, gold continues to be sought after not only for its allure but also for its resale value. In this blog, we will explore the reasons behind the enduring resale value of gold and why it remains a reliable investment option, and why cash for gold in Lajpat Nagar is best to sell gold among other competitors in the market. If you want the highest resale value for your gold jewelry, gold ornaments, gold coins, and even scrap gold you can trust cash for gold in Lajpat Nagar, Delhi.
Buy 1 oz Gold coins from BOLD Precious Metals. Always the lowest prices! Fast & secure shipping. Free shipping on orders +$199. BOLD gives you always best price and deals compared to other dealers.
Gold Business,How it operates,Making of bars, Setting the price of gold,Role of bullion banks,Fixing to the consumer,Gold forecast & news,Gold Trading View & Technical Overview,Gold Spot US Dollar
NIBRACA | We are leading Gold & Silver bullion wholesalers, manufacturers,supplier,dealers in Mumbai India. Gold and Silver coins are specially designed with Ganeshji, Ashtalaxmi ,Shree ,Trimurti ,Shrinathji ,LaxmiGaneshgi, Balaji & Om pattern.
Cashfor Gold & Silverkings is one of the best gold and silver buyer in Delhi NCR. In this presentation, you will know about unraveling the allure of jewellery the quest for highest benefits
The information collected in this presentation explores the main ideas and advantages of gold bars in the Online Gold Shop, and as a valuable product in general.
This presentation is the best choice for potential customers to understand the benefits to use gold in the 21st Century as a safe-haven asset to protect and increase capital. The presentation is planned for about 20 minutes.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
2. WHAT IS GOLD ?
Gold is a chemical element with the symbol Au (from Latin:
aurum "gold") and an atomic number of 79
Gold has been a valuable and
highly sought-after precious
metal for coinage, jewelry,
and other.
Gold standard most common
basis for monetary policies
throughout human history,
being widely supplanted by
fiat currency only in the late 20th century.
Gold has also been frequently linked to a wide variety of symbolisms and
ideologies
3. WHY GOLD IS IMPORTANT ?
Monetary exchange
Gold has been widely used throughout the world as a vehicle for
monetary exchange, either by issuance and recognition of gold
coins or other bare metal quantities, or through gold-convertible
paper instrument by establishing gold standards in which the
total value of issued money is represented in a store of gold
reserves.
Pure gold is too soft for day-to-day monetary use and is typically
hardened by alloying with copper, silver or other base metals. The gold
content of alloys is measured in carats (k). Pure gold is designated as
24k.
4. WHY GOLD IS IMPORTANT ?
Investment
Gold as an investment.
Many holders of gold store it in form of bullion coins or bars as a
hedge against inflation or other economic disruptions. However,
some economists do not believe gold serves as a hedge against
inflation or currency depreciation.
5. WHY GOLD IS IMPORTANT ?
Jewelry
The softness of pure (24k) gold, it is usually alloyed with base metals for use in
jewelry, altering its hardness and ductility, melting point, color and other
properties. Alloys with lower carats, typically 22k, 18k, 14k or 10k, contain
higher percentages of copper, or other base metals or silver or palladium in the
alloy.
Industry
Gold solder is used for joining the components of gold jewelry by high-
temperature hard soldering or brazing. If the work is to be of hallmarking
quality, gold solder must match the carat weight of the work, and alloy
formulas are manufactured in most industry-standard carat weights to color
match yellow and white gold.
6. GOLD RESOURCE
Gold extraction can be the most economical in large, easily mined
deposits. Ore grades as little as 0.5 mg/kg can be economical.
Typical ore grade in the open-pit mines are 1-5 mg/kg while are
grades in underground or hard rock are usually at least 3 mg/kg.
Since the 18th Century, Witwatersrand Gold Rush located in South
Africa discovery of some of the largest gold deposit in the world
has ever seen. Other major producers are the United States,
Australia, Russia and Peru. Mines in South Dakota and Nevada
supply two-third of gold used in the United States. At the end of
2009, it was estimated that all the gold ever mined totaled
165000 ton.
7. GOLD RESOURCE
China is the world’s largest producer of gold. Its production increased by 62%
since 2001 while world output fell by 9.6% during the same period. The
production rose from 285 to 300 ton of gold.
Australia is the second largest gold producer in the world with 215 ton. It has
been declined steadily since its peak in 1998.
South Africa has lost it place of number 1 of gold production in 2007, now it’s
the third largest in the world with the United States of America. It can produce
of 215 ton of gold.
Russia gold mines can produce 185 ton of gold.
Peru can produce 180 ton of gold. Its production grew by 30.4% since 2001.
Canada is the country of mining, not only for these abundant resources but all
the half mines in the world are located here. This country contains geologist
and mining engineers among the best in the world. Its production fell down
since 1991 for 43% and increased by 5.2% in 2008. Canada produced 95 ton.
Indonesia can produced 100 ton of gold; it increase of 66% by 2008 and
decreased 23% compared to 2001.
8. GOLD SECURITY
The comprehensive range of gold bullion bars can be refined up
to 999.9, or even 999.99 purities and available from 400-ounce
(12.5 kilograms). It accepted as ‘Good Delivery’ in all major
markets worldwide. Sizes and purities of bars are matched to the
special requirements of regional markets, fabricators or end
users. All bars are subjected to rigorous inspections and weighing
before packing and dispatch, as would be expected of the world’s
perfectionist in precious metals.
9. GOLD SECURITY
Each 24K Gold Bar will be equipped with
the certificate which each identical on
the series number.
On the gold bar will be clearly identify
the brand, certified assayer, gross
weight, purity gold and identical series
number.
10. GOLD SECURITY
This is the 24K Gold Bar that sell in Thailand,
which the gross weight have been change to
‘Baht’. One ‘Baht’ is equal to 15.16 grams.
The rest of gold bar will be stamp with the
Brand, gross weight in Baht, certified
assayer, and identical number. Each bar will
come with the certificate from the assayer
company.
The 24k gold bar with certificate can be sell
worldwide, but gold bar that have a ‘Baht’
unit can be sell only in Thailand as it’s the
one who use these unit in the world.
11. GOLD SPECIFICATION
The gold standard is a monetary system in which
the standard economic unit of account is a fixed
mass of gold. There are distinct kinds of gold
standard. First, the gold specie standard is a
system in which the monetary unit is associated
with circulating gold coins, or with the unit of
value defined in terms of one particular
circulating gold coin in conjunction with
subsidiary coinage made from a lesser valuable
metal.
12. GOLD BAR PURITIES
Gold Bar Purities percentage
100
99
98
97 Gold Bar Purities percentage
96
95
94
Dubai Iran Hong Kong Thailand
13. THE FLUCTUATING GOLD MARKET AND
PRICE OF GOLD
The fluctuation of Gold prices can also be influenced by
how expensive it is to explore for and develop gold to
produce the product needed for selling gold or make it
into sellable gold jewelry. Because of the constant
fluctuating costs of things like oil and staffing, as the cost
to mine the gold fluctuates, so will the value of the gold
produced. Considering the high rate of oil prices, mining
for gold on a large scale would be very detrimental to the
economy because it would cost entirely too much to mine
for. Therefore, if one keeps in mind the cost of other
economic resources then it is easier to predict the value of
gold.
14. PREVIOUS GOLD PRICE
Gold is an Asset
Gold Prices are usually denominated in US
Dollars
Gold prices are linked to the value of US Dollars
Historical relationships
Gold Price Forecast
15. MAIN GOLD MARKET SWITZERLAND.
The term Suisse or Swiss gold bars refers to some of the
finest, purest and highest quality gold bullion bar products
manufactured in Switzerland. They enjoy worldwide
recognition, have been traded on international gold bullion
markets for decades and are popular amongst investors seeking
to profit from the current gold Bull Run.
One of the most important reasons why Suisse gold bars are
highly regarded and trusted around the world is because they are
manufactured in gold refineries that have met strict quality
controls established
16. TRADING GOLD STRATEGY
With the price of gold hitting all time highs many traders are
wondering if gold trading is a great way to be able to make
additional profits. One way that this can be done is through the
trading of the gold futures contract. This is where you are
speculating that the price of gold will rise or fall in the future.
Historically speaking gold has been a great long term investment
during times of economic uncertainty or crisis.
17. PUSH AND PULL GOLD MARKETING STRATEGIES
1. Push strategy
A push promotional strategy involves taking the product
directly to the customer via whatever means to ensure the
customer is aware of your brand at the point of purchase.
"Taking the product to the customer"
2. Pull strategy
A pull strategy involves motivating customers to seek out
your brand in an active process.
19. HOW GOLD TRADE IN THAILAND FUTURE
EXCHANGE MARKET
There have 2 main transaction in Thailand future exchange
market
Trading Procedure
Investors can trade TFEX’s products by placing orders via their brokers which
are TFEX members (Members).
Trading system
All TFEX’s derivatives contracts are executed, cleared and settled
electronically through the integrated trading and clearing platform. The state-of-
the-art technology solutions are the latest development of NASDAQ OMX Market
Technology. NASDAQ OMX Market Technology has successfully developed
derivatives exchange trading platform in 26 countries worldwide including North
America, Europe and Asia region. The platform can support various types of
exchange-traded derivatives contracts, including futures and options. It also
supports different types of orders, including combination or spread orders. These
built-in features facilitate investors’ need to execute transactions with advanced
strategies.
20. HOW GOLD TRADE IN THAILAND FUTURE
EXCHANGE MARKET
There are two trading methods.
1. Electronic Trading Transaction
2. Block Trading Transaction
22. MARGIN AND MARK-TO-MARKET
Under the TCH’s clearing rules, all traded futures contracts must be cleared and settled
on the next business day (T+1). Each futures contract traded on the TFEX will be
marked to the market daily based on the futures settlement price.
An investor is required to maintain a margin account with a broker and a clearinghouse
member is required to maintain a margin account with the clearinghouse. The
clearinghouse will stipulate the margin rate and then will re-evaluate the margin
requirements for each member’s base on a daily basis.
For a client, when opening an account to trade futures, a broker will ask an
investor for an initial deposit to cover the initial margin for each contract to
buy or sell. At the end of each day, the broker marks-to-market the investor’s
open futures positions. This is the process by which the broker will add and/or
deduct gains and losses from the account’s balance. If client’s margin deposit
falls below a certain level (as determined by the broker) the broker will then
ask the investor to deposit additional money into the account to bring the
margin back up to the required minimum. This is called a variation margin. In
the event that the client has made a profit from his/her futures position, the
client is then able to withdraw the money from the account.
23. WHY GOLD IS THE GOOD INVESTMENT
COMPARED TO OTHER ASSET
People accept
When in crisis gold will have value more than
other asset
Less risk compare with stock
Return on asset higher than other asset
Can keep for long time
24. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
The price of gold has increased a stunning 400% in the last
decade and 26% on 2010 alone, trading today (9/11/11) at
$1843.60 in the 24-hour New York spot gold price [1],
which is the most commonly cited gold price. What makes this
interesting is that traditionally gold has been considered a very
low risk and low expected return investment that has been used
merely to balance some of the risk in an investors’ portfolio.
Meanwhile, at the beginning of the new millennium, we have
been living, and continue to live, in times of great political and
economical uncertainty on a global scale. In this chapter it will be
studied what kind of uncertainties have had an effect on the
demand of gold as an investment and the price of gold, and what
is the rationale behind this. [2]
25. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
The actual demand of gold and gold products as such has been
steadily increasing in the past decade. The increase in this
demand is however been relatively slow and can’t really alone
explain the high price. There is also a theory of price
manipulation that stipulates that the price of gold has been
suppressed artificially low by the banks and the governments for
the past two decades. Arguably the central banks actually hold
only about half the amount of gold they have reported and
secretly sold the other half to the market, which would prevent
the prices from rising to their actual value. This theory has
however not been proved and therefore can’t either explain the
high price of gold. Now we can finally go in to the subject of
global financial and political crises and their implications on gold
price. [3]
26. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
A very simple, yet a valid relation between global crises and the price of
gold is that when everything else in the markets is falling, gold price
goes up. This is mainly because investors believe that gold will maintain
its value when the prices of other commodities are falling and the
interest rates remain low. Perhaps the single biggest factor that drives
people to invest in gold is however that today the price of paper
currency is so volatile. Financial crises actually affect mostly to the value
of paper currency, which in turn affects the price of gold. The main
reasons that affect the price of paper currency are as follows.
Political unrest
Economic depression
Rising Inflation
27. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
As mentioned in the first paragraph of this chapter, this has truly been a decade of
financial and political crises, which some argue that started from the 9/11 terrorist
attacks. At the beginning of the millennium we also witnessed the burst of the IT-
bubble, which caused the value of the technology stocks to crash. Many people
already at that time turned to investing in gold. In 2008, the subprime crisis
crashed the stock markets again and this time the crash was even worse. The world
economy is still getting over.
the crisis and especially the U.S economy is having major problems as the
government debt and the unemployment figures are going through the roof. Also
the Euro zone has been dealing with big problems as some of the southern
countries such as Greece, Italy and Portugal have been piling up the national debt
up to a brink of default. The rising concerns of big European economies defaulting
has yet again made gold a more interesting investment option as the markets are
at risk to take another tailspin. It remains to be seen if these risks actually realize.
Some of the most recent events and the implicated effect on the price of gold are
illustrated in Figure 1 and explained as follows. [5]
28. FIGURE 1: RECENT EVENTS THAT HAVE HAD AN
IMPACT ON GOLD PRICE [6]
Figure 1
highlights some
interesting
events in the
U.S such the
cutting of the
U.S debt
rating, which
instantly raises
the price of
gold. Then
again the two
other events in
the figure
highlight the
raise of debt
ceiling and the
extension of
low interest
rate periods
29. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
Now, these events can be considered as positive news in terms of avoiding an
economical meltdown. However the reaction in the markets is still that the price of gold
is going up, only with increased volatility. This is mainly because that even if the
meltdown was avoided, there remain high risks of an economic disaster as both the
Euro zone and the U.S are crumbling. However this just goes to show that not always
good or bad news have the expected effect on gold price. [6]
Now, how can we use this information to figure out if and when one should invest in gold spot or
the futures market? Well, we have to predict where the gold price is going to move and is there
going to more economic disasters or not. It can be expected that a major crisis will raise the price
of gold, while if such crises can be avoided and the financial markets stabilize, we can expect the
demand, and thus the price of gold to fall. Most experts at the moment believe that the price of
gold is still going to rise to at least $2000 an ounce, while some experts have even made wild
predictions that the U.S government will lose control of the dollar, which would skyrocket the gold
price anywhere from $5000 up to $10000. Then there are also skeptics who believe the current
gold price is nothing but another bubble waiting to burst. They claim that everybody is just
following suit and investing in gold blindly and that the hype has raised the price much higher than
the actual value is. The bubble could then burst when the financial situation calms down and the
interest rates go up. But of course if everybody believed that gold would be worth at least $2000
dollars an ounce, it would already be traded at that price in the stock markets, according to the
theory of perfect capital markets. [2]
30. THE IMPACT OF FINANCIAL AND POLITICAL CRISES
ON GOLD PRICE
So in conclusion, is gold a good investment? Well it depends on your
investment strategy and the amount of risk you are willing to take. Gold is
clearly no longer a low risk investment with the increased price volatility and
the suspicions of a price bubble. So you may now want to have it as the risk
balancing investment in your portfolio and keep in mind that you also need to
diversify to some low risk investments as well. I personally think that it could
be a good idea to have some portion of your assets invested in gold since it is
very likely that there’s going to be more financial and political crises in the near
future and the gold price will continue going up. One thing is for certain
though; if you know that Greece or the U.S will default tomorrow and no one
else knows it, invest your money in gold today.