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Supply-Demand Paradox: The World Gold Price Increase comes true PDF Print

Many people ask me to tell them when is a good time to buy dinars; I always say that the aim for short-term speculation - it is time to buy gold / Dinar could always be wrong. Conversely if the orientation to secure the long-term assets, then buy one of these can always be right.

 

This is also reflected in what happens in the international market, the days of yesterday's price in the range of U.S. $ 1,060 / oz thought was too high - so people expect down. But instead the opposite happened, prices continue to rise significantly - up to touch the highest rate of U.S. $ 1,089 / oz overnight.

 

The increase is not due to last night by the weakening U.S. $, because otherwise U.S. $ instead strengthened some points. The increase in gold last night due to the gold market phenomenon known as supply-demand paradox.

 

The point is this, when the gold supply increases - the logic that prices will fall as demand is relatively fixed. Anyway, it was announced last night that the IMF sold their gold that they blow up its news too much. IMF to release 200 tons of central bank of India - from around 400 tonnes of which had long planned to sell.

 

Additional fresh 200 tons of gold from the IMF is supposed to increase supply and reduce prices is not it?, It happened just the opposite - with the IMF gold bought up by India, the market perceives a greater power other than China and Russia are ready to buy gold in large quantities -- gold whenever it exists. This is also being reduced confidence in the world of paper currency system - commanded by U.S. Dollars.

 

Execution of the plan to release half the gold the IMF also welcomed by the market - with rising gold prices sharply - because this step will reduce uncertainty in world gold prices that can be triggered by the actions of IMF gold has. With the supply of gold to those who live off of 200 tons; market feel comfortable - that the IMF would not be much longer play a role in this international gold prices.

 

Distrust of the U.S. $ as a measure or unit of account, is now also spreading in the world gold market. When all this world gold price is always stated in U.S. $, now spearheaded by a major gold dealer who is well known that Kitco based in Canada - the gold price movement in a more real world it can be followed in a basket of major currencies of the world - not just in U.S. $.

 

The movement of the real price of gold was by Kitco named Kitco Gold Index or abbreviated KGX. Two charts I present in this paper I get from their site for real time last night and for the last year.

 

From the two graphs is measured by KGX, we could see gold up 2.44% overnight and 29.71% over the last year. This means an increase in gold prices overnight, and last year was real.

 

So even though these days would seem costly Dinar, is still very likely be much more expensive few months ahead - there's no wrong time to secure earned you many years now

 
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