Since its discovery way back in antiquity, gold has been used by many different nations as a medium of exchange or trading commodity. Many currencies were pegged to gold standard for centuries until World War II which plunged the entire globe into a financial crisis and the U.S started printing money to pay for the war. After the war ended the US Treasury revalued gold peg to $35 per troy ounce. For a while the system worked until 1971. Again, due to war the U.S started printing money to pay for wars except this time the Vietnam War. Once France and other European nations demanded their gold from the U.S, the system became so unstable that they had no choice but to close the gold window and formally enter into a fiat currency system.
When people talk about the gold market, they refer to the buying and selling of gold worldwide. As a currency, gold transcends borders and the spot price is the same everywhere, even though it is expressed in different currencies. The most famous and important benchmark used for the price of gold is the London Gold Fix which takes place daily at the London. There are several companies, financial institutions and international banks that take part in the daily fix which is priced in US dollars, the Euro and the Pound sterling. While these companies, banks and financial institutions are responsible for fixing the daily spot price, a lot of what happens behind the scenes in the stock market where gold is being traded is affected by factors like geopolitics and the economy. The state that the world is in and the economy of countries like the U.S and the U.K can affect the price of gold significantly. For instance, gold trading rose sharply around the Brexit and US elections as investors scrambled to find a safer investment haven for their money. This means that the demand for gold rose as did the price. During these times many investors flocked to the bullion dealers to sell gold Brisbane.
The price of gold also rose sharply after the 2008 financial crisis. To stem the financial meltdown governments like the U.S pumped billions of their Federal Reserve money to bail out the financial sector and try revive the economy. What this inadvertently did was cause inflation to rise driving the price of commodities like gold even higher. At one point, it looked like gold might cross the $2,000 mark but it held firm above the $1,400 mark for some time.
So, yes gold is a safe haven that can bring great rewards during hard times. About two thirds of the world’s mined gold ends up above ground as jewellery which means a lot of people have more money than they really know stashed in their jewellery boxes than they have in their bank accounts. Gold jewellery is liquid wealth and when the time is right you should “sell gold bullion Brisbane”. Many gold bullion investors actively buy and sell gold bullion Brisbane with their local gold bullion dealer.
