The Intrinsic Value of Gold

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Gold as an investment is more prevalent as a currency than a commodity. The more gold that a country or an individual has, the more competent they are in terms of faring well with others. 

Though e-currency has become the popular choice, nothing beats the old-fashioned reliance on gold. Simply put, gold is valuable in itself, and though external factors may decrease its value, it still quite pricey. 

It is also a myth that if all the gold is mined it would lose its value. As explained by the Diamond-Water Paradox, gold will always remain valuable in spite of the clear value of other non-renewable resources. 

Then, the question is how are speculations accurate in determining the value imposed on gold? Is it purely based on a whim or on a serious deliberation from a consensus of countries? 

.Article Source: http://EzineArticles.com/7338216

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6 Factors That Affect The Global Price Of Gold

Gold Supply Versus Demand
Gold Mining Production 

Monetary Policies Of Central Banks 

Economic Volatility 

Value Of The US Currency 

QE3

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11 Reasons Why the Gold Price Will Rise Rapidly

1. Selling of Gold by the Gold Cartel 

2. Shortage of Supply 

3. Transfer of Gold Depositories

4. Increasing war and social unrest 

5. China is adding to its gold reserves

6. China is encouraging its citizens to buy gold 

7. India, which has been the largest buyer of gold 

8. GLD, the SPDR Gold Trust buys gold to back its shares. 

10. Paper currency devaluation 

11.QE3

Article Source: http://EzineArticles.com/3017103 -->

6 Reasons Gold Price Set To Double By Year's End

6 Major Reasons the Price of Gold Might Double

1. The Election campaigns between President Obama and Mitt Romney are running very close together according to several major media reports. 

2. The Mayan 2012 end of the world prophecy keeps further panic among prophecy believers alive until the 13th of December when either the world ceases to exist or the prophecy is deemed another hoax.

3. The value of the euro has declined with all the latest rounds of in decisions coming out of Europe trying to resolve their fiscal woes. 

4. The German government consistently does better than the rest of the EU community economically. Many of the EU nations view Germany who has the largest deposits of gold bullion in the EU nation as their caped crusader who could come out to save the rest of the struggling nations by helping to strengthen their personal fiscal problems.

5. The EU countries are increasingly becoming tapped both economically and financially. The more these countries beg for assistance the worse things become. As the level of this activity increases, gold again increases in value.

6. Perhaps the most significant reason is that the value of gold will increase during the year as it progresses along. It will be the media outlets that amplify its progress, along the way. There are going to be many cynical investors making major market moves out due to miserable financial performances within the markets.

Article Source: http://EzineArticles.com/7230529  6 Reasons  Gold Price Set To Double By Year's End 

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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.Should gold be worth $2,000 per ounce in 2012? Absolutely not. Are we using more gold in our everyday lives? Of course not. Jewelry stores have very little inventory of items made with gold when compared to 5 years ago.Article Source: http://EzineArticles.com/6825797

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