Spot gold prices are the cost of one Troy ounce of pure gold, and that price fluctuates hourly, according to global demand for gold. There is a direct correlation between spot gold prices, and gold demand, and an inverse correlation between dollar values, and spot gold prices. This means that gold prices historically rise, when
I) Global demand for gold rises, and
II) Dollar values continue to struggle, or depreciate
A great many financial experts, not to mention pro-active investors, are closely monitoring dollar values along with the spot gold price, as these investors have converted their investment and retirement dollars into physical gold. Multitudes of investors have been virtually fleeced by so-called “traditional investments” in stocks and bonds, as monumental mismanagement, and government meddling have contributed to one of the most devastating Wall Street meltdowns in history. Our global economy is awash in a stormy, dark sea of conjecture and uncertainty, while dollar values are being viewed with greater speculation every day. Presently, we are encountering the onset of a long-term inflationary cycle, which a great many fear will further depreciate our nation’s dollar. There is also global outcry over U.S. dollar values, as foreign countries own $trillions of our country’s debt, and countries like Brazil, Russia, India, and China are calling for the U.S. dollar to be replaced as the official World Reserve currency.
Spot gold prices are historically a reliable economic indicator so prospective investors are advised to familiarize themselves with their fluctuations. It is also imperative that they thoroughly evaluate their individual financial needs, to help determine the type of gold investment to meet those specific needs. These investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts to household investors.
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