QUOTE AND NEWS
WA Business News  1 hr ago  Comment 
Gold has fallen, as the US dollar strengthens and hopes for progress in the Greek crisis revive after the country told international creditors Athens could accept their bailout offer if some conditions were changed.
TheStreet.com  5 hrs ago  Comment 
NEW YORK (TheStreet) -- Shares of Kinross Gold Corp   were retreating, down 5.39% to $2.19 in afternoon trading Wednesday, along with other gold related stocks as the precious metal trades in the negative. Gold prices are approaching a...
newratings.com  5 hrs ago  Comment 
WASHINGTON (dpa-AFX) - Gold futures slipped for a second straight session to end at a near four-week low Wednesday, on some upbeat private sector employment data for June even as the dollar strengthened against a basket of select currencies. But...
Benzinga  8 hrs ago  Comment 
In a report published Tuesday, UBS strategist Edel Tully wondered why gold seemed to be so disconnected from the Greek crisis. He noted that "developments in Greece don't seem to be impacting gold in any meaningful way," at least relative to "how...
newratings.com  11 hrs ago  Comment 
WASHINGTON (dpa-AFX) - Gold was flat Wednesday morning near 4-week lows as the world watched for a last-minute deal to rescue Greek from the brink of fiscal disaster. Greece is daring its euro zone neighbors to let the nation default on...
Reuters  Jul 1  Comment 
Jeweller Rajesh Exports said it will finalise an acquisition on Thursday from a handful of targets that have been identified, after a local daily reported the company could buy a stake in a Swiss gold refinery for about $400 million.
The Times of India  Jul 1  Comment 
Gold prices continued to slide for the second straight day and fell by Rs 140 to Rs 26,710 per ten grams at the bullion market on Wednesday largely in tandem with a weak global trend and slackened demand from jewellers.
Daily FX  Jul 1  Comment 
Gold prices are stalling at two-month chart support while the SPX 500 is digesting losses having broken the uptrend set from late March.
The Hindu Business Line  Jul 1  Comment 
Gold hovered above a near-four-week low on Wednesday, due to a stronger dollar and hopes of progress in the Greek debt crisis after reports that the country would accept most conditions from its i...




 
TOP CONTRIBUTORS

This article is about investing in the commodity gold. For the article on the company with ticker GOLD, see Randgold Resources (GOLD). For other uses, see Gold (Disambiguation).

Gold is one of the most highly-sought after precious metals in the world. It is used in jewelry, electronics, and coinage. Gold is widely considered to be an effective hedge against inflation, which means that when the dollar depreciates, demand for gold increases. In addition, during times of economic and political uncertainty, the demand for Gold rises due to its high intrinsic value and relative stability. Moreover, the introduction of gold ETFs and the increasing wealth in emerging markets, such as China, India, and Latin America have contributed to rising demand for gold. While demand for gold has been rising, supply has been dropping as many of the top gold producing countries have had decreasing production over the past few years.

Gold has been used as money for more than 3,500 years as it doubles as a currency and a store of value. Gold is one of very few assets that is not the obligation of someone else. It has also proven to be a good hedge as inflation since the experiments with unbacked fiat money began in Europe and the USA in the 18th century.

Prices

Gold futures contracts are traded on the COMEX under ticker symbol GC and are delivered in January, February, April, June, August, October, and December of every year. (For more information on commodity tickers, check out the commodity ticker construction page.)

Investors Gold

A soft metal with a characteristic deep lustrous yellow or yellow-brown color. Au chemical symbol, [1] with the chemical element of atomic number 79, valued for use in jewelry and decoration, and to guarantee the value of currencies. The purest form of money, and the oldest, most durable. Gold, Aurum was already legal tender before the first coins. The oldest gold coins derive from the seventh century BC.

Investors use Gold as a store of value. Gold metal offers the appearance of capital appreciation compared to depreciating currencies. Gold has always had favorable liquidity, but Gold is sterile, it does not provide any current income. [1] Gold does not provide positive cash flow to the owner. Gold owners must pay to maintain, store, and insure Gold, which is an expense. On a cash flow basis Gold a liability, Gold costs you to own it. [2]

As an example, if returns were adjusted for inflation from 1802 to 2001. $1.00 invested in stocks would have returned $599,605.00 while bonds and bills would have returned $952.00 and $304.00. The results for investments in gold and the US dollar would have resulted in losses, since that $1.00 investment in gold would have been reduced to 98 cents and the US dollar only seven cents. [3]

Companies Who Benefit from Rising Gold Prices

Gold Companies

  • DRDGOLD (DROOY) is the fourth largest gold miner in South Africa. South Africa is the world's top gold producer after India.
  • Goldcorp (GG) is a gold mining company based in Canada that has the lowest cash costs of any tier 1 mining company. It is the 5th biggest gold producer.
  • Harmony Gold Mining (HMY) is the 5th largest gold producer in the world, is the largest gold producer in South Africa and also has mines in Papua New Guinea.

For a complete list of companies involved in the gold industry, see Gold Industry

Gold Exchange Traded Funds

Most gold ETFs buy gold as backing for the fund. [4]

Other Gold Exchange Traded Funds

High End Jewelry Companies

High end jewelers actually benefits from rising gold prices because as prices rise, gold jewelry becomes a more valuable and coveted option.[9]

Companies Who are Hurt by Rising Gold Prices

Low to Mid End Jewelry Companies

Low to mid end jewelry companies tend to suffer from increasing gold prices because the company's lower income clientel are less flexible to price changes.

Individual Consumers

In addition, individual consumers are hurt by the rise in gold prices as they are no longer able afford it. This is particularly true for cultures which rely on gold articles as a symbol or key aspect to ceremonies.

Historical Gold Prices

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Whether as the basis for the monetary unit of a country, or in its role in comparison to the currency price of silver, the history of gold price has long been a subject of great interest to both the scholar and the general public.

Below are five series for determining the value of gold price historically:

Gold Futures

References

  1. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton Gordon Malkiel ISBN-10: 0393062457 pg359
  2. Rich Dad Poor Dad by Robert T. Kiyosaki ISBN-10: 0446677450 pg61
  3. Equities: An Introduction to the Core Concepts (Mark Mobius Masterclass Series) ISBN-10: 0470821442 pg 16
  4. Have gold ETFs bottomed
  5. Wikipedia:Gold Exchange-Traded Fund
  6. Wikipedia:Gold Exchange-Traded Fund
  7. Wikipedia:Gold Exchange-Traded Fund
  8. Wikipedia:Gold Exchange-Traded Fund
  9. High Prices as Good as Gold in Jewelry Market
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