reasons gold price to increase

The Gold Prices Continue To Rise - Is The Price Of Gold Inflated?

You can look at the prices of gold as a reaction to monetary policies. It is not the other way around. No doubt, there are some investors running purely on speculation, however for the most part, investing into gold, and the price of gold, simply reflects the lack of trust investors (and people in general) have in government's ability to bring the economy around.

Clearly, people do not have much confidence in Congress or Obama's administration and do not expect the economy to make any dramatic turn for better any time soon. Even though the stock market made huge jump in the past 2 years, other parts of the economy remain gloomy.

Probably the most pressing issue is the unemployment. At close to 10% (although the Democrats like to stress that it is LESS than 10% - nice feel-a-little-better speech tactic), unemployment drives the fear to all-time high levels.

As the U.S. economy is service based, such high unemployment numbers inevitably reflect in consumer's confidence, reducing spending, and causing more lay offs. It's a vicious circle that no one seems to be able to get us out of. At least no one in the government.

Still, I see one positive coming from all this turmoil and misfortune. Self-reliance. People can now see, that no government will be able to solve their financial problems and unless you are happy with the amount of your wealth-fare check, you simply must prepare for bad times, during the good times.Article Source: http://EzineArticles.com/5402954

Wall Street Wants Gold Prices to Rise Above $2,000 in 2012

The effect of higher gold prices on the jewelry industry has been disastrous. Jewelry made with gold and platinum have seen significant price increases over the past 3 - 5 years. These increases have been passed on to the consumer and in effect have made gold and platinum jewelry more expensive and harder to find. Many jewelers have substituted gold jewelry with silver and are offering pieces of a lesser quality. None of this effects Wall Street investors, unless they happen to own jewelry stocks that have never fully recovered from the market collapse in 2008. In fact, Wall Street has created a new bubble that will eventually burst, just like the housing market and dot com bubbles before this one. With world currencies like the Euro and Yen in flux, gold is the precious metal by which all currencies are valued. But to use this as a way to create investment instruments that have absolutely no real value is very suspect. These instruments only serve to artificially inflate the value of these precious metals and give Wall Street a new carrot to dangle in front of hungry investors looking to profit on the next big bubble.

Article Source: http://EzineArticles.com/6825797

Understanding Gold Pricing and Gold Price Charts

Gold trading started out using basic trading - a buyer negotiated with a seller, and the trade took place immediately. This immediate exchange of goods and money is referred to as a Spot trade today. There are two other types of trades you need to understand.

You already understand the Spot trade - it is a transaction where delivery of the commodity, gold in this case, occurs immediately at the time of the trade. The problem with this type of trade is that it is not useful when trading on gold because it takes time to discover, extract, and refine gold. The producer needs to spend money to acquire the gold, and a consumer has no idea how much the gold might cost. So the idea of a Forward Contract started - in this case the seller and buyer agree to a price based on a fixed future date and fixed quantity. The price of a Forward Contract is determined now, yet the transaction is completed in the future. A more complex type of Forward Contract is a Futures Contract. A Futures Contract is so complex that it requires its own exchange - which operates much like a stock exchange.

The gold rate can be the rate at which gold is currently trading, its spot price, forward contract price, or futures contract price. A gold chart is a basic bar graph with time on the horizontal axis (at the bottom) and the price on the vertical axis (the right side of the graph). The price at the point in time is plotted on the graph and this gets repeated for each time or day. A line joining the points completes the graph. The gold chart can represent a day of trading, an hour, week, month, or any other time frame. Using a gold chart, traders may be able to spot patterns that may help determine factors that influence gold pricing and may help predict future gold prices.

Article Source: http://EzineArticles.com/6110506
reasons gold price to increase