{"id":250,"date":"2010-05-04T12:17:38","date_gmt":"2010-05-04T19:17:38","guid":{"rendered":"http:\/\/goldcoinsrare.com\/?p=250"},"modified":"2010-05-04T12:17:38","modified_gmt":"2010-05-04T19:17:38","slug":"fundamentals-on-gold-remain-strong","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/fundamentals-on-gold-remain-strong\/","title":{"rendered":"Fundamentals on Gold Remain Strong"},"content":{"rendered":"

The basic fundamentals<\/a> that move the price of gold<\/a> are supply and demand and dollar fluctuations.\u00c2\u00a0 The price action on a daily basis can be measured in terms of predominant buying and selling of gold, and strengthening or weakening of the dollar.<\/p>\n

Even though we are off of our most recent record gold price of $1,218 in December of 2009, the fundamentals for gold remain strong.\u00c2\u00a0 Gold is one of the scarcest resources in the world.\u00c2\u00a0 Mining output has increased as the bull market has raged on but demand has still outpaced the new supply increases.\u00c2\u00a0 This has come from new investors and NGO\u00e2\u20ac\u2122s (non-governmental organizations).\u00c2\u00a0 In addition, foreign central banks have become net buyers of gold<\/a> as of late, whereas before they had been net sellers for many years.<\/p>\n

The World Gold Council said that \u00e2\u20ac\u0153investor flows, specifically from western markets, have provided a key means of support during the course of the credit crisis as investors sought to diversify their exposures to other assets and protect their wealth against market shocks.\u00e2\u20ac\u009d\u00c2\u00a0 It is simple, demand is outpacing supply, and therefore the price of gold is rising, and has been for the past 9 years.\u00c2\u00a0 The fundamental demand for gold continues to grow.<\/p>\n

On the dollar side of the equation we continue to see the central banks around the world print money at will.\u00c2\u00a0 This helps gold in two ways.\u00c2\u00a0 The first way it affects gold is the more money that is printed the more fear it produces in citizens of that respective country.\u00c2\u00a0 People become fearful of inflation or a collapse and want to divulge themselves of their currency.\u00c2\u00a0 The more fear that exists the more demand there will be for gold.\u00c2\u00a0 The second way that money printing affects gold is the more money that is printed the less that currency will be worth over the long-term.\u00c2\u00a0 This is simple inflation, which can lead to hyperinflation which can lead to a currency collapse.\u00c2\u00a0 As the value of a currency falls, the value of gold will rise in that currency.<\/p>\n

Investment demand for gold worldwide is strong and the central banks are helping to fuel that fire.\u00c2\u00a0 In my opinion they will continue to do so as it is the path of least resistance in addition to making debt easier to afford, and the world is deep in debt.\u00c2\u00a0 So look for the fundamentals on gold to continue to show strength for years to come.<\/p>\n","protected":false},"excerpt":{"rendered":"

The basic fundamentals that move the price of gold are supply and demand and dollar fluctuations.\u00c2\u00a0 The price action on a […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[56,1421,83,86],"class_list":["post-250","post","type-post","status-publish","format-standard","hentry","category-blog","tag-foreign-central-banks","tag-gold-prices","tag-inflation","tag-invest-in-gold"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=250"}],"version-history":[{"count":0,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/250\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}