The prices of gold are rising very high which is giving different impact on the buyers. This will stay at the same place for some time.

Federal Reserve and Gold Prices

The actions of Federal Reserve is considered t be the most important catalyst. The printing of money, to get bonds, or implement quantitative easing was based on the commitment from Chairmen Ben Bernanke who continued this. This all give the same result in the same consequences.

This produces in the degrading of the US dollar which continues to produce an invalid debt level.

In the future, if these quantitative easing were stopped, so from the actions the fall out of the Federal Reserve will remain with us for much time which can last for years or more.

This is considered to be the most important factor which helps to know about the ongoing rise in the prices of gold.

Interest charge

The most important factor is supposed to be the low rate interest climate which benefits from the prices of
gold.

Ben Bernanke said that it won’t go much high till the economy is weak. This is also told by the action of Federal Reserve. The main problem still is that to the contrary to some reports, this economy is considered to be a disaster still and there is no other way Bernanke will increase the rates of interest any time he thinks.

It will help the gold to be protected as far as it is concerned. And in this way it can be somehow helpful for people.

Economic flaw

Ever since, we had the worst economy with the tech bubble burst, and there are no recovery found till then.

This is all done in the response of the high rate of the federal debt to the unsustainable levels, but it is of no use also. More people or you can say students enter in to the markets, but still there are no jobs available for them and the economy is still is disaster.

Banks aren't lending also, which is in fact what the problem is at the back. The basis they aren't lending is since of the risk they be familiar with is there, and the reason many businesses aren't even attempting to get loans is there are a small number of increase opportunities that would give cause for the debt load.

In America, this is considered to be the fact which leads the growth of economy.

For the support puzzle of gold, this is another way.

US dollar Collapse

Many people around are losing their power to purchase, this we have discussed earlier as well. And in history this has never been recorded when it comes about that it is dropping so easily today.

The US dollar will be at low rate if the sovereign debt crisis comes down more easily to the pressure on the euro.

But it is also noticed that there is nothing available that will change the rise or decline of the rates of the dollar, this is because there is no will or the political will which will help to take such important steps.

This is very important news for the people who invest on gold. As they think this is the most lawful form of currency. Some people also identify it as gold bugs.

This is because of the truthiness of the degrading of the greenback.

Sovereign Debt Crisis

In Europe, it was supposed that gold was protected by the sovereign debt crisis and it is not good that the US dollar and gold abandon gone up at the same time. When we talk about gold, it goes very high and as the depth of crisis which is understood.

Socialism

It has been noticed that when it comes down, the prices of gold are interlinked to the fall of socialism, which is invalid and made a culture of entitlement over the world.

Over the whole universe, this will happen many times till the fall of socialism is agreed upon.

Rise

To protect against increase in the prices is considered to be the last point in which the gold and other commodities are the ways in which we can place the money. This have little effect on different investment vehicles. 


zakaria
12/11/2012 09:03:34 pm

the gold’s value is always increasing, especially after the 20 century, and it will continues this way until finding another metal to replace the gold which is very impossible.

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Scott H
12/13/2012 05:46:15 am

The price of gold will always continue to increase because of the demand. It's consistently being used to produce products therefore the supply is dwindling and as an effect the price is rising.

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Niloy
12/14/2012 09:45:05 pm

With the decrease of the value of the dollar, the value of gold will increase proportionally. Actually, the value of gold doesn’t depend entirely on the value of dollars. It has an independent existence to measure its own value. As of my believe, I believe that the rarity of the gold will always keep it precious time by time. Although the market is actually controlling the price of the gold, it seems the price of the gold never be lower in price as it is an international issue.

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Kristine Joy Escarilla
1/5/2013 11:17:45 am

Since the depreciating value of the US Dollar cannot be halted, the price of gold will continue to increase. The value of the US Dollar continues to drop, and as a matter of fact, this is reflected in the increased rate of unemployment in the USA and the unavailability of the US banks to provide loans for businesses. As these manifestations continue to be present, it is understood then that the value of the US Dollar continues to decrease and the price of gold continues to increase.

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A.Jane
1/8/2013 12:44:04 am

Inflation due to the current economic crisis in the US as well as certain economic policies, like quantitative easing from the Federal Reserve, threatens investments based on the dollar. It’s nerve racking to think that what you could buy today, might cost twice as much tomorrow. At least with gold you know it will always carry some value.

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ghifary kamal
1/17/2013 02:12:40 am

Every investor takes a precaution as to whether there is a chance to gain profit. Because the main intention behind invest is the profit. This implied intention pushes everybody towards the investigation of the market. But think the Federal Reserve System has been initiated by gold that means the more quantity of gold a country has the more rich they are. That is why I am supporting the writer that there is no way of falling the price of the gold.

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Adnan S. Jatt
1/18/2013 03:38:04 pm

the price of gold will always rise higher and higher. because demand of gold is increasing day by day. the gold mining companies are predicting a decrease in gold production and complete ceasing in 2025, that time the prices thus will become sky high because almost all of the gold in the world will be getting used up. the wide range of usages of gold from computers to space shuttles, form automobile industry to integrate chips is going to consume almost all of the world's gold today. Apparantly gold is enjoying low prices, but infact it is going to shoot sky high in the years to come.

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