Daily Archives: December 11, 2018

Determining Gold Price

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Precious metals trading Frings informs its customers gold is assessed currently as high as never before and allows therefore profitable sales transactions. But based on what factors will actually set the gold price? The Aachen-based precious metals expert of Guido Frings in the following deals with this question. While himself determines the current value of shares mainly of public trading, several factors work together in the gold price arising from the importance and history of trade this precious metal. The spot price is the most easily visible to the outside influence factor. He finds himself in the most price stickers. The spot price is calculated from the gold price of the last transaction, the currently lowest offer and highest prices major world exchanges such as New York, Tokyo and London. As average price, he depicts summarized the current gold trading and changes constantly.

However, no official significance to the spot price. This is due to the fact, that the gold trade in the Unlike stock transactions almost always to the most part trades took place. In the course of this, based on so-called OTC transactions, markets, within a large scale gold buying is handled mostly through direct, guided by phone, negotiations between sellers and buyers. Your price agreement takes place under exclusion of the public and is not aimed for the spot price. The influence of the long tradition of the gold trade is reflected in the London gold fixing. Since 1919, representatives of five, in the gold trade will meet every day especially influential banking houses and set the gold price by oral agreement. Same rules always follows the course of this meeting: the Chairman of the elite circle suggests a gold price.

Then explain the other members after the present buying and selling offers of its customers their approval or rejection. Then new rates be suggested until an agreement is reached. During the London gold Fixing originally held in the British capital, where its name comes, is it done today via conference call. The price of gold is determined not only by spot price and London gold fixing. Forward transactions involving gold buyers and sellers to price fluctuations to hedge themselves are another important influence factor. It’s just small amounts of gold, neither buyer nor seller achieve prices that correspond to the institutional review. Lower purchase prices and higher sales are here, as in other economic and capital assets that are traded in lower margins, usual. Private gold seller does not usually have the standardized 400-ounce bars of trafficking world market and therefore faces the problem of finding a trusted trading partner, it pays a fair price for his valuable precious metal. The Aachen-based gold expert of Guido Frings is a with its precious metals trading for transparent and fair terms and conditions at any time. Further questions to the He answered gold purchase at any time.