What Makes the Gold Price Rise and Fall?
The price of gold rises when some event encourages marginal buyers to buy, or discourages marginal sellers from selling. This article discusses the top 10 factors that drive gold prices.
economics
Gold steady as the dollar fights for credibility
Gold is hovering around $2,320/ounce, down from its all-time high of $2,450 on May 20th. Silver has taken a bigger hit; down 11% from its May peak.
10 Key Factors That Determine the Price of Silver
The price of silver is determined by supply and demand on major exchanges, as traders react to inflation expectations, interest rates, industrial demand, and geopolitical events.
The Top 5 Benefits of Investing in Gold
Gold is immune to inflation, valued across every culture, and independent of banks, governments, and corporations. Today, gold's greatest benefit for investors is its ability to improve risk-adjusted returns in a portfolio.
Gold surges in the face of rising yields
Typically, rising yields are bad for gold. Not this year. Rising yields represent an increasing risk of a public debt crisis, for which gold may be the only remedy.
Investors turn to gold as rate cuts loom
When the Fed cuts interest rates this summer, gold and silver stand to absorb billions of dollars as investors redeploy their mountain of cash.
Trading the Gold/Silver Ratio
The gold/silver ratio = price of gold divided by the price of silver. Here is how to use the ratio to spot opportunities in the precious metals market.
What Causes the Economy to Crash?
Economic crashes begin with artificially low interest rates and credit expansion which lead to a misallocation of resources, inevitably culminating in a recession.
Credit Spreads Approach 2007 Levels
Low credit spreads and surges in “extreme greed” often reflect a fervor which disregards proper risk assessment.
What Backs the United States Dollar?
Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government’s ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.