Gold Business – Gold and Silver Bullion Vs World Currencies
Gold and Silver Bullion vs. World Currencies. If you are a person obsessed with market spot prices of the day, hold your horses because market spot price has very little to do with gold and silver bullion demand, any time gold or silver bullion prices drops in price by $50 or more which is common in the industry is always associated with two events; sell offs for profits by fund managers and speculators as well as big money manipulation of the precious metals market.
Fund managers often need liquidity when there is little to no liquidity generated from other investments so precious metals acts as a saving grace, it is also clear that in most cases many of these same managers and speculators after selling off some of their metals holdings, they simply turn around and repurchase these metals in either short future contracts or physical metals on the dip in prices to repeat the process over and over again.
But let us look at much of the world outside of Europe and the US, most countries do not devalue their precious metals based on western spot market prices, as their perceived value of these metals has more cultural and symbolic importance within their culture; however this fact does not diminish profiteering activities in these countries among the gold bullion dealers.
As most of these countries pay three times the spot price for gold bullion; even when you take into consideration the currency exchange rate; the price point remains higher than the western spot price, so in essence westerners have it good right now.
But as we get nearer to the G7 and G20 meetings scheduled for mid 2011; we can all expect a new world currency order as a final solution to the global currency imbalances plaguing much of the worlds economies.
The implementation of the new global monetary policies will not be for the faint of heart; nor will it be of any real benefit to the masses; however if you are watchful and astute; begin aligning yourself with the big winners as a result of the new policy; and the winners are gold and silver bullion.
Be prepared to witness huge spikes in the gold and silver bullion markets worldwide; but surprisingly other less interesting metals will also ride this wave of value when the dust settles.