Sunday, August 15, 2010

Gold Prices

Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social, or fiat currency crises (including investment market declines, burgeoning national debt, currency failure, inflation, war and social unrest). The gold market is also subject to speculation as other commodities are, especially through the use of futures contracts and derivatives.

In March 2008, the price of Gold exceeded US$1,000, achieving a nominal high of US$1,004.38. In real terms, actual value was still well below the US$599 peak in 1981 (equivalent to $1417 in U.S. 2008 dollar value). After the March 2008 spike, gold prices declined to a low of US$712.30 per ounce in November. Pricing soon resumed on upward momentum by temporarily breaking the US$1000 barrier again in late February 2009 but regressed moderately later in the quarter.



After fluctuation returned near the US$1,000.00 mark in mid-September 2009, Gold Price peaked at US$1,023.30. Pricing later declined moderately again in late September 2009, falling back to US$991.70 for the week ending on September 25, 2009.

Gold Prices Later in 2009, the March 2008 intra-day spot price record of US$1,033.90 was broken several times in October, as the price of gold entered parabolic stages of successively new highs when a spike reversal to $1226 initiated a retrace of the price to the mid-October levels.On June 17, 2010, Gold closed at a new nominal high of $1,248.

From May 5th 2004 gold spot fixing takes place by telephone. In April 2004 N M Rothschild & Sons announced that it planned to withdraw from gold trading and from the London gold price fixing. Barclays Bank took its place on June 7th 2004, and the chairmanship of the meeting, formerly held permanently by Rothschilds, now rotates annually.

Spot gold is a wonderful investment and very fruitful . A tradition of the London gold price fixing was that participants could raise a small Union Flag on their desk to pause proceedings. Under the telephone gold price fixing system, participants can register a pause by saying the word "flag", and the chair ends the meeting with the phrase "There are no flags, and we're fixed".






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