Current Gold Silver Prices : Detailed Review
What are the elements that influence the price of gold?
It is difficult to determine precisely to what extent each factor is decisive or not. If you are considering selling or buying gold, be aware that the following factors will affect the future price of gold:
The market rate: the higher the rate obtained by an investor for a bond or a savings account for example, the less he will be willing to invest in a product that does not earn interest, such as gold. The price of gold therefore decreases in principle when interest rates rise, and vice versa.
Current Gold Silver Prices : Tips and Advices
The price of the US dollar: the price of gold is often expressed in “US dollar per troy ounce” (about 31.10 grams). When the value of the dollar rises, the price of all assets in US dollars will decrease and therefore that of gold. If it is expressed in euros, the price of gold will remain more or less constant.
Inflation: When it comes to inflation, everything becomes more expensive. It is not surprising that gold also becomes more expensive. The price of gold generally increases when economic figures are released indicating a likely short-term recovery of inflation.
The international political situation: in the event of a threat of war for example, gold is used as a safe haven. Generally, the price of gold will therefore increase in case of international political uncertainties. This increase in value will probably disappear when panic fades.
Supply and demand: it is mainly central banks that have large stocks of gold. When they decide to sell these stocks (in part or in whole), this puts pressure on the price of gold.
Current Gold Silver Prices : Recommendations for Investors
Invest in other commodities?
In principle, you can also invest in other commodities, such as oil, metals and agricultural products. But the risks are very important: the prices of commodities can change very quickly because of speculation. Investing in commodities requires a lot of monitoring and a very good knowledge of the financial markets. It is therefore not an investment product intended for ordinary investors.
Gold Investement Advice
Apply only investment methods that you understand. Leave the others to the experts.
Purchase knowingly through a specialized institution or your bank. Do not buy on expensive or questionable websites.
Keep your gold in a chest. Outside the safe, the risk of loss or theft is great. Keep in mind that keeping gold costs money and investing in gold is not worthwhile.
Beware of collectibles. You will usually pay more than their gold value.
Investments in other commodities, such as oil, metals and agricultural products, are very risky and are not suitable for ordinary investors.