For centuries, gold is considered a valuable asset by virtue of its beauty, of its chemical properties, as well as its use as a traded commodity. For hundreds of years it has been the currency at the international level
As a result, mining and exploration has tended to increase when the price of gold is higher and therefore the profits are greater. Currently the world’s largest producers of gold are South Africa, Australia and the United States.
Offer on the gold market also contribute to the existing stocks ” on the surface”: this means, for example, jewelry, property owned by the investors and the gold reserves of central banks. International agreements such as the Washington Consensus have placed limits on the sale of gold by central banks that have joined.
It is estimated that this sector represents about two -thirds of gold demand worldwide. The world’s largest market for gold jewelry is India.
Due to its conductivity, malleability and resistance to corrosion, gold is used in the production of a wide range of electrical products, especially in the telecommunications and information technology, and safety-critical applications. The demand for gold has grown increasingly popular as a result of the use of this metal in these areas.
Being a metal non-toxic and biologically inert, gold is often used in dentistry in alloy with other metals such as platinum, silver, palladium or copper.
gold always attracts investors, especially as well, ” shelter “, and as a hedge against inflation and fluctuations in the dollar.
The Gold Market:
The three major world stock exchanges on which futures are traded on gold are the New York Mercantile Exchange (NYMEX), the Chicago Board of Trade (CBOT) and the Tokyo Commodity Exchange (TOCOM). The gold contract on most liquid in the world is traded on the NYMEX and is used by large commercial producers and consumers, and the financial actors. TOCOM and CBOT contracts are traded electronically.
Members of the London Bullion Market Association fix the spot price of gold twice a day, at 10.30 and at 15.00 London time. The prices of the afternoon are used as a reference for the gold price in the world.
The factors that affect the price of gold are:
– The demand for jewelry
– The industrial demand
– The interest from investors