Do you have golds. Of all the precious metals, gold is the most popular as an investment.
Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency
crises (including investment market declines, burgeoning national debt,
currency failure, inflation, war and social unrest). The gold market is
subject to speculation as are other markets, especially through the use
of futures contracts and derivatives. The history of the gold standard, the role of gold reserves in central banking, gold's low correlation with other commodity prices, and its pricing in relation to fiat currencies during the Late-2000s financial crisis, suggest that gold behaves more like a currency than a commodity.
Factors influencing the gold price
Today, like most commodities, the price of gold is driven by supply and demand as well as speculation. However unlike most other commodities, saving and disposal plays a larger role in affecting its price than its consumption. Most of the gold ever mined still exists in accessible form, such as bullion and mass-produced jewelry, with little value over its fine weight — and is thus potentially able to come back onto the gold market for the right price. At the end of 2006, it was estimated that all the gold ever mined totalled 158,000 tonnes (156,000 long tons; 174,000 short tons). This can be represented by a cube with an edge length of 20.2 metres (66 ft).Given the huge quantity of gold stored above-ground compared to the annual production, the price of gold is mainly affected by changes in sentiment (demand), rather than changes in annual production (supply).According to the World Gold Council, annual mine production of gold over the last few years has been close to 2,500 tonnes. About 2,000 tonnes goes into jewellery or industrial/dental production, and around 500 tonnes goes to retail investors and exchange traded gold funds.
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