Wednesday, September 14, 2011

Gold as Investment Instrument

Gold investment as an instrument

InstaForex Company invites you to visit a stable and efficient capital equipment savings. Today, virtually every interested person can gain access to markets and invest the money in the world in his / her goods in precious metals. In addition, gold can only be the dead weight, but also a store profitable. You can use the gold future opportunities that will bring tangible returns. It 'very economical to invest in gold during the crisis, when the objects investment can not give the same result.

Gold is the most ancient and more efficient capital and evaluation of wealth. Other precious metals were used for the same purpose. Generations are changing, however, all gold had an equal and a common means of payment and property, at the same time. The "gold standard" system that exerts a great influence on world economic development in the 19 to the 20th century. National borders has been reduced in exchange for gold and served as the main global currency to 70 years of the 20th century. For this reason, transactions with precious metals were under strict control. In general, operations are conducted at state level, "the monetary authorities and international financial organizations.

However, due to contradictions in the system, qualitative changes have taken place and the exchange rate has become floating.As result, the role of gold has changed the legal basis was excluded from the figure of business world currencies. Gold price liberalization began, the rights of individuals "in the physical possession of the metals have been expanded. The precious metals market changed not only the structure of the market but also its members and line operations change. Today, gold is no longer a payment mechanism, but has not left the system of economic relations. Today, the world gold market is a set of national and international markets, which are almost independent of the control government. All this guarantees a yield of 24 hours at a time global precious metals and their derivatives.

The structure of demand in the world gold market may be nominally divided into three sectors: the hoarding of all levels, consumption and industrial and domestic speculation. The offering consists of precious metals, private reserves and the government, the processions of secondary raw materials (gold) and illicit trafficking.

The main sources are gold producers, the main buyers are using it for industrial purposes. Both appear in the market due to irregular factors. However, we stop surges and declines in precious metals market again.

Gold Souk

International gold markets are located in urban areas as well as Zurich, Hong Kong, London, New York, Dubai. Rigorous standards are set at quite a few market participants. They are usually large banks and specialized companies that have a good reputation and credit standing. Range of possible operations in the international market is quite large. No tax and customs control. Large-scale operations, precious metals have made 24 hours a day, which offers customers an extensive network in the gold market. The handles are tightly regulated, because the rules are the players in the market.

The gold markets are domestic markets for one or more countries focus mainly on local investors. They are divided into open and regulated markets. Open markets are almost all markets in Europe, for example, in Milan, Paris, Amsterdam and Frankfurt am Main. Regulated markets are in Third World countries. National markets, transactions are conducted primarily with small bars and coins in national currencies as payment.

Black market can be found in some Asian countries in the region. Their birth is due to the entire state under the supervision of activities in gold. Black market parallel to them. Closed market is a form of domestic organization radically, with the import and export of gold is banned, and because of taxes, "The prices of precious metals trading is not really possible because of the domestic price above the world price of gold.

The participants of the gold market

Gold workers

Especially primary gold is provided by gold producers. They can be small or large. It is quite logical that the influence of society on the market depends on the amount of gold for it. Consequently, other market participants pay particular attention to the behavior of the major gold producers.

Industry

Industry and jewelry industry as well as companies involved in processing (clearing house of gold).

Stocks

In some countries there are special sections on the largest stocks, dealing in trading of precious metals and gold in particular.

Investors

Different interests of major investors to different types of gold investment instruments. In general, the most popular instruments for the gold market investors are the CFD.

Banking

Domestic banks are the most impressive players in the gold market, are the rules. It is worth mentioning that the sales of gold reserves focus is not their main objective, but show active interest in the use of reserves. Central banks have a significant impact on market conditions, which revealed 90 and 20 century. Domestic banks have a strong impact on market sentiment, which has become particularly evident in the '90s and '20s.

Brokers and dealers

Professional intermediaries and dealers in gold markets are specialized companies and commercial banks. They have one of the main features, like almost all the money goes to their hands at first.

Physical metals market

The largest volume of transactions with physical gold held in London and Zurich. First was the greatest part of all operations in the gold trade in London, which was facilitated by deliveries of metal from the British Commonwealth countries (mainly in the Republic of South Africa). They were attracted by the skillful organization of precious metals trading. The gold was transported from London to continental Europe, and from there was sent to the Middle East.

No comments:

Post a Comment