Golden Commodity

This article is deemed to be correct at the time it was written. The information contained within this article has been thoroughly researched from valid sources. The writer has taken every precaution to ensure that the information contained within is accurate, however the author or the publisher of this article will not be held liable for any losses that may arise from reading this literature. Among all the gold dealers found in Australia, the dealers in Melbourne stand out due to the better offers that they give sellers. A majority of gold buyers in Melbourne are fair to customers and transparent when buying or selling the precious metal. Buying and selling gold bullion is a multi-trillion dollar industry and in order to understand the scenario a little better, here is a brief overview about gold.

Golden Commodity

Gold is an essential commodity; it is the basis of which currencies are determined in order to gauge a nation’s net asset value. Based on gold reserves that a sovereign has a country’s currency is given value. The World Bank releases loans based on this criteria too. Fort Knox is said to be in possession of all of America’s gold reserves. An estimate indicates more than two thousand tons of gold stored in Fort Knox. Why gold bullion? The answer is rather simple, gold and silver has been the only real money for the past five thousand years. The earliest record showing gold as a value based element was in Egypt within the Code of Menes whereby it is quoted one part of gold was the equivalent of 2 and a half parts of silver. Gold being as valuable as it seems to have not been as scarce as it is now. If we take the issue of the Jews who were led out of Egypt by Moses and while he was on mount. Sinai, the Jews denounced the god of Moses and made a golden calf out of gold that they had and worshipped it. It did not occur to the Jews to pay or trade their gold to the Egyptians to buy their freedom. That fact also points out that gold either had no value or very little value at that point in time.

Anyhow over the ages as gold has been mined of the surface of the globe, this has led gold to be deemed as a scarce metal, thus giving it value. Over the past twenty years gold has reached its pinnacle of value in relation to money, which is why you should buy bullion. The global crisis that impacted the world played an enormous hand in causing people to trade in their cash and buy bullion. Gold and silver are tangible elements that could be traded for cash at any given time based on spot gold prices that are set by the London Fix. The London Fix occurs twice daily over a telephone conference that is setup up by the London Fix itself. This conference is what determines the price of gold globally. Like any other commodity gold also plays according to the rules of economics and that is it falls to the whims and fancies of the price mechanism which is based on supply and demand, regardless of what price it lands at, one thing you can be sure of is that the gold buyers in Melbourne will be ‘spot on’ with the price.

Related News

Copyrıght 2014. All RIGHTS RESERVED.