Solved

How are Gold rates determined

Posted on 2016-11-01
4
33 Views
Last Modified: 2016-11-20
Hi,
Dont know whether this is a valid question to ask on Expert Exchange.. But really curios if could get answers to general questions like this..
I want to understand how Gold rates are determined and whether Gold will increase in the next 10 years or not..
Any videos links or articles will also be good.

Thanks
0
Comment
Question by:Rohit Bajaj
  • 2
4 Comments
 
LVL 24

Accepted Solution

by:
Dr. Klahn earned 250 total points (awarded by participants)
ID: 41868194
Gold prices are determined by the prices that purchasers are willing to buy at and sell for on the various commodities exchanges such as the London exchange.

The price of gold reflects both its intrinsic value and market speculation.

The price of gold has historically increased over the long run because gold generally maintains its "intrinsic" value against inflation.  So long as governments print fiat money in larger amounts than they take in taxes, the price of gold must necessarily increase for gold to maintain its intrinsic value.

(The "intrinsic" value of gold is, imo, a misconception.  The intrinsic value is not identical across all societal conditions.  For example, if 90% of the human population were to be wiped out by plague, gold would be worthless as it would have neither practical nor speculative value to survivors trying to eke out a living.)

The speculative value, over and above the intrinsic value, goes up and down depending on economic conditions, national economies, consumer fear, and catastrophes.  Whether the speculative value will increase in the future is anybody's guess, like every other stock market or commodity market price.
0
 
LVL 20

Assisted Solution

by:viki2000
viki2000 earned 125 total points (awarded by participants)
ID: 41868306
I find your question interesting.
It is called "Gold fixing" and refers to names as N M Rothschild & Sons.
For others may be just a currency.
Here are some charts 1, 2
But maybe next essay from Princeton university gives a interesting insight.
0
 
LVL 17

Assisted Solution

by:Tiras25
Tiras25 earned 125 total points (awarded by participants)
ID: 41868744
The market rate for gold is priced by trades executed on various commodity exchanges, just as stock prices are valued on stock exchanges.  Buyers and sellers put out bid prices.  Those prices are accepted or rejected, driving changes up or down.

10 YEARS, do you think inflation will occur over the next 10 years?  History of gold prices is easy to find.
0
 
LVL 20

Expert Comment

by:viki2000
ID: 41894655
The given explanations are valid.
0

Featured Post

Is Your Active Directory as Secure as You Think?

More than 75% of all records are compromised because of the loss or theft of a privileged credential. Experts have been exploring Active Directory infrastructure to identify key threats and establish best practices for keeping data safe. Attend this month’s webinar to learn more.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Suggested Solutions

Title # Comments Views Activity
HDMI + Audio Optical TOSLINK Switcher 2 63
Car computer reset 4 82
Noisy or bad lifters 7 59
Xerox color cube copier tech support phone numbers 3 39
Finding a job can be stressful - searches, resume tweaks, and networking events can be super boring. Luckily we're here to help you land your dream job!
If you want to move up through the ranks in your technology career, talent and hard work are the bare necessities. But they aren’t enough to make you stand out. Expanding your skills, actively promoting your accomplishments and using promotion st…
The Bounty Board allows you to request an article or video on any technical topic, or fulfill a bounty request to earn points. Watch this video to learn how to use the Bounty Board to get the content you want, earn points, and browse submitted bount…
Notifications on Experts Exchange help you keep track of your activity and updates in one place. Watch this video to learn how to use them on the site to quickly access the content that matters to you.

948 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question

Need Help in Real-Time?

Connect with top rated Experts

23 Experts available now in Live!

Get 1:1 Help Now