Quotation
Pure Physical Gold Quotes
Careisgold SpA offers free real-time quotation of Pure Physical Gold.
The values transmitted refer to the Fixing determined by the London Bullion Market Association and are expressed in grams.
What factors affect the price of gold?
1. CURRENCY MARKET
Gold has historically been characterized by an inverse correlation with the dollar and with other currencies of developed countries, which represents a good hedge against the weakness of the dollar and an excellent alternative for careful diversification.
2. INFLATION AND DEFLATION
The inflationary and deflationary variables of the price index condition purchasing power and affect consumption and savings, but gold responds well both in times of inflation and in those of deflation due to its function as a safe haven.
3. INTEREST RATES
The opportunity cost of holding Gold increases as the real interest rate increases and decreases otherwise, affecting the demand for the metal.
4. INCOME AND CONSUMPTION
A higher per capita income leads to a greater propensity to save and consume goods, such as ingots, jewelry and technological applications, and therefore to a growing demand for gold.
5. TAIL RISK
Tail Risk is typically caused by an unforeseen severe economic or financial crisis, creating a systemic shock that creates panic in the markets. Stressful situations on the markets lead investors to highly liquid and less risky financial assets.
6. THE SUPPLY OF PHYSICAL GOLD
Mining supply can affect the price of gold. The variation in the extraction capacity of companies in the sector can significantly change the price of the metal.
An important means of payment
For millennia, gold has been considered the most important and secure means of payment.
In England as early as 1846 it began to be used as a currency, with the Gold Standard system, which was then also adopted by other European countries and by the United States, India, Russia and Japan. This gold standard established an economic order based on the conversion of banknotes into gold, according to a fixed exchange rate.
In 1944, following the economic damage of the world wars, the Gold Standard was replaced with the Gold Exchange Standard. Representatives of 44 countries created the International Monetary Fund: the dollar was chosen as the reference currency of gold and the price of the latter was set at 35 dollars per ounce.
In 1971 the United States abolished the convertibility of the dollar into gold, decreeing the end of the gold standard and the birth of the floating system of flexible exchange rates. Thus was born the free market for gold , the price of which depended on supply and demand.
Gold in Italy
A great turning point for Italy came in 2000, when Law 7 abolished the monopoly of the Italian Exchange Office and sanctioned the liberalization of the market, allowing all Italians to buy and sell it.
From that moment on, investing in physical gold represents the safest way to diversify and protect your assets.
