Factors which influence the gold market with 100% guarantee
Factors which influence the gold market with 100% guarantee
In the previous articles it has been discussed about gold market drivers such as demand vs supply relationship, gold industry and many more. What else impacts the prices of the most coveted metal on the planet?
Read the third of this series of articles!
Global InterGold: quantitative easing. What is it?
Quantitative easing is the strategy of central banks which implies buying securities to raise the money supply, which in turn, increases liquidity and helps banks loan more money. What happens next? The consequence translates into lower interest rates, which impact gold prices. Further in the text it is explained why it happens.
How do interest rates influence the market of the yellow metal?
The usual scenario is as follows: when interest rates are high, gold prices are low as people tend to free up their funds for other types of investment. In like manner, when interest rates decrease the prices of the yellow metal can rise again, as they make the precious metal more attractive as an asset.
Instability of central banks
The majority of the countries of the world have these institutions of major importance for domestic economies. When central banks go through difficulties, arouses in people the need to secure their individual finances, for which gold becomes the ideal asset given its condition of safe-haven. In this connection, the demand for the precious metal increases, and as a consequence prices increase.
To that end, people around the world value this precious metal and aim at keeping a personal reserve. Global InterGold Online Gold Shop clients use the opportunities gold grants everyone. They buy highly qualitative gold bars in the Internet shop in order to ensure themselves a stable economic future.
