A Little Hard To Accept
It’s a little hard to accept that gold bullion is actually at all time highs currently at $1055.00 an ounce. A seemingly great time to own gold. But why it has risen and still rising is a puzzeling question for most people that don’t follow prescious metals. I found a portion of a website that explains it pretty well. At least it is understanding to a layman like me. Apparently, some of the increase is because of the weak dollar. What that means is that when the dollar weakens, it takes more dollars to buy an ounce of gold. That makes some since when you consider it. Conversly, when the dollar strenghens, it takes less dollars to buy an ounce and that is reflected in the price of gold going down. The other variable is supply and demand. If the demand of gold is higher, the price of gold is reflected as an increase. If the demand is lower, the price of gold drops.
We are in a time of the year when gold is more in demand. It’s hard to imagine that so much gold is sold for jewlery but it is true and this is the time of year that jewlery is purchased for weddings and gifts. India and China consumers are big purchasers along with the US.
Anyway, this is the site that actually explains if gold has really gone up or down. Click Here. I am also making this link obvious near the graphs to better stay on top of what is really happening.
