How is the price of GOLD determined?
The basics of this is that everything works on supply and demand. If everyone wants it, the price goes up. If nobody wants it, the price goes down. But with gold there is an additional special reason people buy it. When the stock market it is trouble people love to buy gold. They love the fact that gold was once the basis of all money. They also love the fact that gold is a physical item.By seeing it and touching it you feel safer with gold. On a larger level, gold pricing is determined by what companies and countries are mining gold. Another issue to deal with with gold is the exchange rate. If the country where most of the gold is mined has a currency that rises, then the cost of gold to buy from that country will rise. If the contract for gold is written in $US then the value of the $US will cause a fluctuation in the price of gold.
