| Gold Market Price | | | | paper currencies can lose their value and your |
| "What is the gold market price right now?" is not | | | | buying power can decrease. In an extreme |
| a simple query to answer, because the | | | | situation, the paper currency might lose almost all |
| information is always changing from day to day | | | | of its value. |
| and hour to hour. As I write this article, the price | | | | Perhaps the most famous example of this was |
| of gold is 929.40 dollars per ounce. But the | | | | Weimar Germany in the 1920s, when the |
| previous 30 days has gone through a wide range | | | | currency inflated so drastically that there was a |
| of gold prices, from a high of $993.20 per oz. to a | | | | daily doubling of consumer prices. One famous |
| low of $897.30 per ounce. That's a 10% | | | | image of that period is the sight of peopl using |
| fluctuation within the span of a single month. | | | | wheelbarrels full of paper money instead of |
| Why does the gold market price change so | | | | firewood to heat their homes, because the |
| much? Well the price of gold depends on supply | | | | money was worth less than wood. There are no |
| and demand. When the average joe like you or | | | | indications yet that our economic forecast is as |
| me buy gold items such as jewelry, or buy gold | | | | bad as that, but in times of trouble knowledgable |
| investments like bullion bars and coins, demand | | | | investors normally move a portion of their money |
| increases and the price goes up. Then when | | | | into gold to protect themselves in case of the |
| prices rise quite high and everybody decides to | | | | worst case scenario -- a drasitc drop in the value |
| cash in on the high prices by selling, demand goes | | | | of the currency. |
| down and price goes down too. This | | | | If the current problems end soon, then we will |
| supply-demand dynamic is of course affected not | | | | most likely see gold prices drop. If the problems |
| only by invidual purchases and investments, but | | | | persist for years to come as I think they will, |
| also by industrial demand for gold. | | | | then the gold price will continue to go up (with |
| One thing that is heavily affecting demand for | | | | dips in price as well).The main reason I think the |
| gold these days is the economic uncertainty | | | | gold price will keep rising in the future is that |
| facing the U.S. and the world as a whole. | | | | goverments around the world are spending more |
| Oftentimes you will notice that when there is | | | | money than they have, devaluing their currencies |
| good economic news then the gold prices will | | | | over time. If you hold fiat currencies, your wealth |
| drop, but when there is bad economic news the | | | | will diminish. If you have gold on the other hand, |
| price will rise. Why is that, you ask? Because gold | | | | your wealth will be maintained. The gold market |
| is seen as a safe-haven for your wealth. Regular | | | | price reflects the trends in fiat currency value. |