GOLD AS AN INVESTMENT
Gold had served as currency for thousands of years until 1971 when the gold standard was abandoned for an order money system. Since that time, gold has been gold as an investment. Gold is often classified as property; however, it works more like money. The yellow metal is very weakly related to other products and is less used in the industry. Unlike national currencies, the yellow metal is not tied to any special country. Gold is a global financial asset and its price shows the global opinion, however, it is mostly influenced by the U.S. macroeconomic positions.
Gold Investment Market
The gold business is a global market, with London and New York being the two biggest marketplaces for gold in the world. The gold business is quite large, larger than many other exchanges. It is estimated that the size of the investable gold market is $2.4 trillion. The average regular buying volume in gold in the over-the-counter market alone is valued at $67 billion, betokening that the gold exchange is very liquid.
Gold Price
The price of gold is determined by amount and interest. However, the annual gold market and supply are only a tiny part of the gold volume that is traded in a year. Unlike most other products, saving and distribution play a larger role in changing its price than its destruction and year-end mining stock. Although most of the volume is in the over-the-counter market, the price process appears largely in the demands of the future, such as Comex. Additionally, the London Bullion Market Association manages the fix twice a celebration. The so-called London fix is set regular at 10:30 GMT and 15:00 GMT, serving as a benchmark for pricing gold.