Saturday, August 13, 2011

Deciding Whether To Buy Gold San Francisco As An Investment

By Eleanor Thompson


Think of buy gold San Francisco and it is natural to be reminded of the Barbary Coast, the City's Red Light District during California's Gold Rush of 1948-1855. Miners would rush to exchange their bounty for girls, booze and card playing. It is interesting that the Golden Gate, the inlet leading from the Pacific Ocean into San Francisco Bay, had received its name two years before the Rush even started, by John Fremont.

People buy coins or bullion as an investment when the value of the US Dollar on the currency market down. Governments can print more money, but they cannot create more of the precious ore. As a rule of thumb, there is an inverse relationship between the price of precious metals and the value of the US Dollar.

If the Dollar goes up in value, the price of the precious ore goes down. If the Dollar is down, then the price of tends to go up. However, the strength of the US Dollar is only one factor that determines the price of precious metals.

The true demand for a precious metal may, itself, go up or down. Their value is measured against six specific currencies including the US Dollar (USD), UK Pound, Euro, Swedish Krona, Swiss Franc and the Japanese Yen. If the ore goes up against all of these currencies, then it is reasonable to conclude that its true value has increased.

If the price of the commodity is higher in USD than in each of the other five currencies, this is an indication that both the USD and the commodity have grown weaker. The fact that the price of gold is quoted in USD gives the false impression that the ore has increased in value.

The foregoing does not constitute advice or a recommendation on whether or not to trade in this commodity. Always consult an expert in trading before making any chances to an investment portfolio. Read more about: buy gold San Francisco




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