Of all the precious metal, gold is considered best for investment. Investors buy the gold in order to evade against any economical, social or currency based crises.
But today’s Gold Market Price and economy, consumers are increasingly selling out the gold to jewelers who resell it to refiners. Nowadays nations have adopted gold as store of wealth and it is considered as a medium of international exchange. The new gold market price results in complex circumstances on a global scale such as 1) developing extremely and highly toxic methods of gold extraction, 2) a continual rise of demand of gold in Gold Market , 3) the termination of gold as global monetary standard, withholding of large number of stockpiles of gold in vaults of national market.
Gold is loaned and swapped into the market by Central bank. There is no question that the levels of gold loaned and swapped into the market by the central bank exert a major power on the Gold Price. Gold lending and swap Market is always misunderstood and often, overlooked aspect of the Market that has more influence on Prices than participants in the market publicly credit. The financial benefits of gold ownership can only be enhanced as the gold market becomes more transparent.
The Gold Market Price has increased from as low as $270 per ounce to over $600 ounce today without a completely transparent market. As more transparent power is implemented in the Market, Gold price will experience exponential growth due to fair reflection and equitable market for all participants. As per the latest news, Gold jumps on India’s 200-tonne IMF purchase that is huge change in Gold Market. Thus this IMF sale to INDIA helps Gold leap to new all time high. This Sale eases past worries among traders on how IMF might carry out its planned sales without adversely affecting Gold Market Price.
Gold Market price has now entered into the next and major leg of the long term bull market after correcting down from $1,035 an ounce. This move has been generated a clear indication from federation that the deflationary twisted fascination about the global economy is more serious than ever been realized. Gold Market Prices in future will float freely in accordance with supply and demand, responding quickly to economical and political events. Gold Market future is directly correlated to COMEX live gold prices. Gold future contracts was opened for trading in U.S on Dec 31, 1974, timed to coincide the lifting of 41 years ban on private ownership of Gold by U.S. Gold is inversely proportional to the U.S dollar, making it as a good currency hedge. As an assets class, Gold can be universally regarded as a currency. Once it was being a economic and Monterey polices of one of particular country’s government.
A wide study of companies in the Gold Market, from Mining Corporation to production of the finished products, can be used in the COMEX division Gold future and Gold Future option contracts to evade their price risk. Gold always had a role in investment policies. The Gold business would be a stronger and more effective division for future investment if the stocks and flow of the trade could be more transparently reported.