Impact on gold prices
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Firstly, many of the participants are the same that you read about in the latest financial headlines. You know that those who are scrambling to fix the chaos, they can get.
This fair, or crisis, as the government has a level of fear among investors, who now for gold and other precious metals as a safe harbor. Many other countries such as China over its currency reserves of U.S. Dollar investments in scrap gold, because of the declining dollar values. This leads to an even greater challenge for financial institutions, based on the money to flow to them.
In turn, major industry, focusing on short-term loan capital to the cash-flow difficulties, will receive the necessary funds from the financial institutions. The result, other areas such as production is also affected.
Once this financial crisis is building even more financial institutions, and leads to other sectors, shares fall more and more investors will become gold.
Yes, how did this impact on gold prices?
The big shift to gold will cause the fall of supply and demand to increase. We all know the result of low supply and high demand, the price rises.
There comes a point when “they” will no longer be able to view the prices for gold, since the overwhelming demand. That is when we see the price of gold to its true value, probably $ 2000/oz or higher.
2 comments Posted in Uncategorized May 25, 2009
