Byron King and the 3 gold price determining factors

What are the most important issues that must be taken into account when buying gold as an investment in the future? The gold expert, Byron King, has analyzed the gold market and came up with 3 basic points. Which ones are these 3 points?

Read the expert opinion and make your own!

Gold prices have been hovering around $1,200 for around two years, besides several short-term run-ups, says Byron King, expert on gold and writer in Agora Financial. He thinks, though, that gold price stimulating conditions haven't disappeared. After a thorough analysis, Byron came up with 3 main reasons why gold prices are where they are.

Global InterGold: The power of the U.S. dollar

It is known that when times are tough, the yellow metal protects one's wealth. However, we must not forget that when times are stable, the U.S. dollar is the one that rules. Investors who focus on short-term investments turn to the order of the day, and due to that fact, many do not see investment in gold as profitable.

Global InterGold: Physical gold demand

The second reason pointed out by Byron is physical gold demand. According to the expert, the demand for the yellow metal is usually inverse to the demand for the dollar. The demand for the American currency is stipulated by monetary policies of the US, and other countries, but how is it connected with gold? King provides an example: China is the largest holder of U.S. government debt exactly with a figure above $1.300 trillion, which could mean that China aims at strengthening the dollar, while the increasing gold demand by this Asian country points out in the opposite direction.

Fear factor. No fear, gold will come to the rescue

The final element which, according to the expert, impacts gold prices is fear. This could explain why in the gold market occur changes which were not likely to happen. King points out that fear is a moving force of many investors, and that gold is especially sensitive to it. Major political or economic issues can turn the situation with gold prices in a different direction.

However, if we take a look at gold prices history, it will become clear that the overall trend of gold prices is upward, while currencies tend to lose their value.

Therefore, the clients of the Global InterGold Online Gold Shop prefer to buy highly qualitative physical investment gold bars which ensure them a stable and prosperous future.

Get acquainted with other news and informative articles devoted to the changes in the gold market on the official website:

Read more: Global InterGold: How to be on the safe side with short-term gold market fluctuations

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