What's the Gold Market Like????

The gold market is unique in the world of finance, because gold is unique. Much more than an investment, gold is an asset in itself, a commodity, a natural resource and a trusted store of value and medium of exchange.

Gold plays several roles in more lives than any other commodity, except water and possibly oil.

Various gold and has a large public service means that the gold market is unlike any other market.
Gold reacts differently to economic and geopolitical factors affecting the financial markets.

For example, the hyper-inflation, which historically has been terrible for stocks and bonds, they encouraged people to seek refuge in gold and gold is always looking to increase value in times of high inflation.

The same applies on other factors:
Geopolitical crises such as war or threat of terrorist attacks suddenly, usually in an increase in the price of gold. After 11 September 2001, U.S. stock exchanges suspended for a week, but rose and gold worth more for the entire period of trading.

Currency crises in Mexico in 1995, Asia happened between 1997 and 1998 Russia disturb the local securities markets dramatically. But in each case the value of gold is compared to local currencies.

Banking crises, as has happened in the United States in November 2008 also tend to be very bad news for the stock markets. In the meantime, gold retains its value for people looking for safe havens.

In short, the kind of factors that tend to the value of stocks, bonds and other assets affected do tend to increase the value of gold. Of course there are exceptions, but in the long run, this axiom has remained true. Zig Zag gold when the paper.

There are some other interesting aspects of the gold market, which also distinguish it from other markets.

For example, there are more opportunities to own gold than any other asset class. You can even physical gold ingots, wafers and coins such as American Eagle, Canadian Maple Leaf or South African Krugerrands. You can own physical gold in the form of gold coins rare.
For those who received no additional security of physical gold, there are also other indirect methods to own gold.
Some people choose, not in the gold market by the holders of shares of mining companies and / or participate refine the gold. Also buy some mutual funds, the shares of those companies an alternative to diversification can be added.

Gold buyers should be aware, however, this method does not duplicate the direct involvement of gold.

There are other ways of owning gold.

One of the last is the "Exchange Traded Fund" or ETF. This type of fund to invest in physical gold, and then turn around and sell shares an undivided interest in the assets of the Fund. In this way, investors in the development of prices of gold can again participate, but without the physical security of the gold property.

A much by participating in the gold market are futures markets, which take individuals to positions on the market with a lever in order to participate in increases and decreases in the price of gold, followed.

This is not the end, what separates the gold market:

Gold is a market that never sleeps. Gold operations around the world, 24 hours a day, 7 days a week throughout the year. No matter how late it is open somewhere in the gold market and gold trading. Therefore, gold closed at a price in New York at the end of the day and open at a different price the next morning because of the effect on the stock exchanges in cities like London, Paris, Zurich, Dubai, Mumbai, Hong Kong, Tokyo and Sydney. No other product is marketed, or much broader and more active than gold.