Gold Prices Touch $1500 as Some Question Inflationary Pressures

Gold costs are the same as any commodity. They fluctuate in the face of pressures of the outside industry. Today, after quality of U.S. debt was questioned by Standard and Poor’s, gold commodities struck a record high, $1,500 per ounce. The price of gold has been going up in a very strong trend over the last few years. Several say this is proof of a weak economy, others are worried this may be an industry ripe for a bubble. Resource for this article – Gold prices touch $1,500 as some question inflationary pressures by MoneyBlogNewz.
High record of gold prices
Two markers have gold on them. These are the major markers anyway. There is a commodity price of gold known as “exchange-traded products.” This is the industry price of shares being purchased in gold typically. Getting gold is also possible. Usually bars or coins are sold. It is easier to fake coins. They go for a higher price as well. Gold certificates are a middle ground, a promise that the gold indicated on the certificate is accessible and belongs to the owner. The commodity price and spot price are tied together. Today’s spot price of gold hit $1,500 in U.S. dollars, an amount that gold has never hit in the past.
Gold market concerns
Gold prices go up every time the financial markets go down. Investors often view gold as a hedge, a “safe haven” of investment. Gold is not like currency in that it will always maintain or increase in value. Since the value of currency of the United States was decoupled from gold, demand for gold has been going up. The value of gold will always stay the same, most assume. Some financial experts are concerned that several individuals are using short-term financial solutions or personal financing as a way of getting into the gold industry that may or may not be worth the investment. Gold prices could easily begin to drop again considering the chance that it could just be a bubble.
Be wary of gold-investment advisers
Investing in gold can have rewards. There are risks too though. Gold has over the years been a strong investment, but dips in costs are possible with fluctuating demand, central bank policies changing and inflation amounts of various currencies fluctuating. Gold is the “only smart investment in the current economy” according to some gold-investment advisers. A lot of advisers sell gold investments. This is done to make money. Balance your gold investment with other investments though if you are going to do it.
Information from
Wall Street Journal
online.wsj.com/article/BT-CO-20110419-701261.html
Kitco
kitco.com/charts/livegold.html
Gold News
goldnews.bullionvault.com/gold_bubble_111120105