Gold

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America & Money: Cool Facts About the History of Our Monetary System

Since 1776, many things have changed dramatically in America. One of the most drastic series of changes has been in the way we conduct transactions using money. Believe it or not, the monetary system that is in place today would be almost completely unrecognizable to the founding fathers. Here are some cool facts about the history of our monetary system.

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Gold Prices Inching Higher

Several factors determine the U.S. price of gold. Inflation, market uncertainty (i.e. worry), the value of the Dollar compared to other currencies (a falling dollar increases the gold price), supply and demand. Market supply can come from three sources: mining, scrap (people selling jewelry to raise cash), and Central banks selling reserves. Demand can come from industrial and commercial sources and investment demand (i.e. people hedging against uncertainty or expecting a rise in gold prices). Recently, overall market and political uncertainty in the world is rising while the Dollar is falling.

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Gold Up Almost Everywhere in 2014

When looking at prices of anything from cars to oil to gold or stocks… we need to keep in mind our personal frame of reference. We see prices as they are priced in our currency i.e. the currency that we earn in. International companies are especially aware of this as their income can be in one currency while their expenses are in another.

Using a U.S. centric frame of reference we might think that gold didn’t perform very well in 2014 but people from the rest of the world would disagree. Today, Jeff Clark, Senior Precious Metals Analyst for Casey Research looks at the effects of currencies on the price of gold. ~Tim McMahon, editor.

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How “Paper Gold” Affects the Price of the Metal

Oddities in the gold market have been alleged for quite some time, but few know where to start looking, and even fewer have the patience to dig out the meaningful bits from the mountain of market data available. In today’s article Casey Research Chief Economist Bud Conrad turns his keen eye to the Gold sector in order to discover how the big banks are using the futures market to manipulate the price of gold.

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