Key Factors That Influence Gold Coin Prices You Need To Know
For centuries, Gold has not only been seen as a sign of wealth, but also as a show of might and power. However, the scarcity of this metal has seen its prices soaring through the roof. If you are a gold coin buyer, clearly, you do not need to be told how frustrating the gold coin prices can get because of fluctuation. If you are planning to go into the industry, the following are the main factors that have over the years affected the prices of these precious metals through out the world.
1. Gold Price per Gram Manipulation
Gold Price per Gram manipulation, of course, is one of the greatest and controversial stories that have over the years rocked the gold trade industry. They have been an avalanche of reports and complaints of a few governments and their central banks suppressing the gold prices without giving any valid reasons, and that alone has seen the prices of gold coins going up.
2. Change in the US dollar exchange rate
From several statistics that have been carried out in the past, gold is and will always trade in opposition to the US dollar; when the value of US dollar starts to depreciate, the world’s prices of gold go up. It does not even stop there; when there are signs of the US dollars value going down, any investor would actually opt to sell his or her dollars for gold with the hope that the metal will store the value of his or her wealth. After all; unlike paper currency gold will for years retain its purchasing power.
3. Supply and demand
Just like any other precious metal, demand and supply has in a way played a pivotal role when it comes to influencing the prices of these precious coins. For instance, over the last few years, the price of gold has sharply gone up thanks to their high demand in the market. Gold is currently one of the most sought after metal.
4. Politics and economics situations
World economic and political situations have also had a hand in influencing gold coin prices. For instance, when the US went to war with Iraq in 2002- 2003, the gold prices amazingly went up. Subsequently, some of the major players in the market opted for stock market investment and not the traditional market we are all used to and it led to massive increase in the prices of this precious stones.
5. Safe haven and Peer pressure buying
For centuries, gold has always be reserved only for the gold freaks; a few individuals who still believe Gold will one day become the only currency left after the eradication of the world wealth. However, as financial crisis continued to bring problems in 2008, a new trend came up; several investors started to convert some of their wealth and money into gold.
At the end; there are other factors that can influence the prices of these precious coins; however, their impact in the industry is quite insignificant and cannot be felt. The above are the key factors that their effects will continue to send shock waves across now and for decades to come.
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