Looking at how gold had become a part of human history on independent platforms across cultures and region, and how it was going to play an even bigger role eventually was an inevitable fact. As people started realizing just how important precious metals could be to the economy of a nation, gold roles in human history took on a new guise and the gold standard was realized. The gold standard was a form of gauging the wealth or credibility of a country and it was also an assurance that the central banks of a particular country had the backup reserves to support commerce. However, when governments became strapped for finance, another change took place, starting in America.
After World War I and World War II, the then US president Richard Nixon, suspended the Bretton Woods system that fixed the mighty green back of the United States dollar to gold at a rate of US$35 per troy ounce in 1971. The Nixon 'Shock' unilaterally suspended the direct convertibility of the United States dollar to gold and made the transition to a fiat currency system. The Swiss Franc was the last currency that detached itself from the gold pegging system. This took place in the year 2000.
Among most precious metals, gold is popular for securing assets or for the sole purpose of investing. Most gold buyers procure gold as a form of a hedge or safe house to deflect economically negative influx, political instability, or social fiat currency crises (including investment market failures, mushrooming general liability, currency failure, inflation, war and social unrest). Gold trade is just like any other commodity in terms of commerce and is subject to trade speculation with a slight characteristic deviance. Gold actually behaves more like a currency than it does as a scarce commodity. The gold bullion and silver bullion trade is the common denominator subject to market speculation in relation to spot prices.
If you look into the annals of history, you will see that throughout much of humankind's history gold has etched itself as the standard for trade. Gold was a constant that was 'implemented' by many countries and sovereigns with different intrinsic values decided by their self-proclaimed economic advisory commissioners.
This unequal situation was a window of opportunity to the travelling merchant in the old days who was able to obtain more merchandise for lesser gold and unloaded the merchandise for more gold in other regions. This was the dawn of speculation in olden times.
Gold standards in the latter part of the 19th century were 'a bit more uniform' and currently prices of gold have been 'controlled' by the London Gold Fixing. The five bullion-trading firms of the London bullion market meet twice daily over a conference call, to determine the fixed price for gold based on economic and political weather that will directly or indirectly affect the prices of gold. Besides using the London Gold Fixing, gold is also 'traded' rigorously and continuously throughout the world by gold buyers based on the intra-day spot price, which, is 'derived' from over-the-counter gold-trading markets around the world.
For more information on buying or selling gold, gold jewellery, gold and silver bullions just visit a reputable gold dealer that trades based on spot gold prices and ask as many questions as you could - ask and thou shall receive!
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