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Gold Prices

A recent review of gold prices definitively shows that there are many people who are flocking to the precious metal and this is causing quite a financial stir in some people’s lives. Taking a look at the gold prices over just the past couple of months you can see that prices have gone almost all the way up to $1,900 per troy ounce. While the prices have seemed to settle in a little bit above the $1,600 per troy ounce mark as of late, this is still much higher than just a few years ago. Many in the financial world were gasping when the price of gold hit $1,000 for the first time and now that number pales in comparison.

Gold – The Ultimate Safe Haven?

One of the reasons for the recent run up in gold prices is that people everywhere are seeking what is called a safe haven for their money. As the economy continues to weaken and the dollar losing some of its spending power, many people feel better being in a physical asset like gold. They simply don’t trust many of the more traditional methods of investing and so they pull their money from some of their most feared investments and put it into gold.

Is Gold Right for You?

With all the hub-bub about gold that has been floating around as of late many people are wondering if they too should be heavily invested in gold. While gold can be a part of any sound investment strategy, it can also be the wrong thing to invest in all together. Really the answer of is gold right for you, all depends on your individual circumstances.

Gold’s Financial Effects on You

What certainly needs to be looked at with the high prices in gold is your portfolio. Even though you may not own any physical gold, you may have assets in your portfolio that can be directly affected by higher gold prices. If you are not aware of such investments then you may inadvertently be costing yourself opportunity and possible portfolio growth.

While you should certainly conduct such a review of your personal portfolio on your own, it is also a good idea to seek a professional opinion as well. This way you will be sure that you are doing everything in your power to preserve your shot at the American Dream whether that means obtaining some gold or just continuing to watch it shimmer.

Spot Gold Price Info

A spot gold price means current market price or it can be said that price based on the price of “futures” contracts. Futures contracts are traded on future exchanges operating in a number of countries.

These futures contracts are standardized contracts in terms of lot size, delivery period between the seller and buyer. Seller means who deliver the commodity and buyer means who receives the commodity for a price fixed in future. Futures Exchanges facilitate single point for commercial trade of all major commodities of country. The commodities may include energy sector like crude oil, natural gas. It may also include cereals like wheat, corn, and soya beans, and metals like iron, copper, lead and zinc. Also future exchanges deal in gold silver and platinum plus other precious metals.

Depending upon market futures contracts is available for each month of the year. It means a contract for delivery of June is available through out of year. Basic behind to establish future market is to allow commercial producers and consumers to establish some guaranteed prices and also guaranteed supply of the commodity which is the subject matter of contract.

Spot price of gold fluctuates depending upon demand and supply. Future contracts are used to hedge the change in gold price risk. Hedgers are those who want to minimize their risk against the price change. Other participants of market are speculator who wants to take risk means the risk which a hedger wants to avoid. By the use of future contract spot price risk can be minimized. Also by the use forward contract spot gold price can be fixed to minimize the risk of price fluctuation of gold in future.

Spot gold price can be determined on commodity exchange market. All the futures contracts are traded on the commodity exchange. You can find the spot gold price from the commodity exchange like COMEX located in New York. The COMEX (Commodity Exchange) is leading commodity exchange in the United States for metals. The process of by which spot gold prices on the COMEX is determined has been specified in the NYMEX rule book.

These markets are fully computerized and the information they provide is in real-time. Second by second information about gold spot price of the futures contract of the active month as it is trading on the exchange is easily available. On the exchange the most active nearby month is also called the spot month. If you want more about the Spot gold price it may be derived from the active month calculation. And the closing gold spot price for the day is derived from that days trading of the spot month futures contract. In New York spot gold price close is calculated as the average of the highest and lowest prices of the trades during the last two minutes of closing period which is 1:28-1:30 PM.

People have option to buy gold from dealer or from exchange. But you can see the difference in spot gold price on the exchange actual prices today for small amounts of gold coins

Learn more about spot gold price and investing in gold at: http://www.pricesgold.org/

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Posted by on Oct 25 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
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