Thursday, December 18, 2008

gold mobility

Although there is no gold dollar as the stability, but it's more expensive than gold mobility much better. Therefore, the dollar is considered to be the first category of money, gold is the second category. When international uncertain political situation tense, people are expected as a result of rising gold prices will buy gold. But most people remain in the hands of their own when in fact the U.S. currency. If the country during the war in the country from its purchase of weapons or other supplies, will be sold short would be in the hands of gold, in exchange for U.S. dollars. Therefore, the period of political instability in the dollar may not rise, depends on the dollar.
http://www.iseekblog.com/catfood/61818/The+international+gold+market.html

In short, the U.S. dollar strong on the weak gold; gold strong on the weak dollar. Investors are usually savings to capital preservation, will take home the gold dollars, U.S. dollars will take home the gold. Although gold is not a legal tender, but still has its value, will not be devalued into scrap metal. If the strong dollar, U.S. dollar investment opportunity, people will chase dollars. On the other hand, when the dollar on the foreign exchange market weaker, the price of gold will be stronger.