Why the market prices of gold are falling

 The falling price of gold

The market price of gold recently reached near-record highs. On the Comex market, an exchange for commodities like gold and silver, gold prices were above $1,600 towards the beginning of this year. On July 19, however, the price was down to $1,290, which is even an increase from June prices. The mid-June prices represent a 29.5% drop in the value of gold since the beginning of 2013 as reported by the Financial Times. Bloomberg Businessweek noted that this was the steepest drop since 1980, and it occurred over two days.

Why has the price dropped?

Prior to this drop, gold prices were increasing. This inflation lead to the most rapid rise in gold prices in approximately 90 years, according to the Financial Times. Many commodity traders and investors viewed gold as a safe, moneymaking investment. The inflation slowed down, however, when traders and investors no longer saw gold this way. Thus, demand for gold declined and so did its price. This decline in prices became a global phenomenon.

What now?

The price of gold could increase, but many do not expect that to happen right away. Some investors have even been trading their gold for silver as they perceive silver to be more secure investment. The lower price has also affected the mining industry, which may have to cut costs.

What does this mean for consumers?

Now that gold prices are falling from such highs, it is time to sell. If one is interested in trading gold for cash, then now is the time. One should attempt to sell gold before the prices drop further.

Determining the market price of gold

As basic economic teachings state, the price of goods depends on their supply and demand. For each good or commodity, there are different factors that affect the supply and demand for that commodity. Gold is traded on markets worldwide, from New York to Chicago, from London to Paris, from Istanbul to Shanghai. Because gold is traded on markets around the world, it is traded 24 hours per day.

Supply and demand help determine the price

How is the price of gold determined? Price fluctuations for gold, as well as other precious metals, depend on how the supply of gold relates to the demand for gold. There are several factors that determine the demand for gold as well as its supply, according to IM Trading.

Gold Demand

The three factors that affect demand are:

·       - Investment demand

·       - Industrial demand

·       - Jewelry demand

Investment

Investment demand relates to those who trade quantities of gold. This typically occurs on markets and is sometimes in the form of Exchange Traded Funds (ETF). There are three types of investors, as reported by ITM Trading, “individual, institutional and official (government).” Each type of these investors acts differently and thus affects the demand for gold differently.

Industry

Gold is a valued industrial material. It is used in manufacturing electronics because it resists corrosion and it also conducts electricity well. Therefore, the demand, and thus the price, of gold can depend on industrial activity.

Jewelry

Gold is valued for is gorgeous aesthetic properties. Jewelers buy gold in bulk to design jewelry, which is then sold at high prices. Additionally, some families use gold as a means of storing value. They may hold on to gold jewelry pieces for a long time, passing wealth down from generation to generation. The demand for gold jewelry is sometimes also affected by those investing in gold pieces to hold on to them for their monetary value.

Gold Supply

Gold supply cannot be separated into categories like gold demand because it is mainly dependent on mines and recycled metal. Gold is a metal that can be hard to obtain because of the places where it is naturally found. This contributes to expensive mining costs. That, in turn, affects the amount of gold supplied. When only a small amount of gold is mined in a year, it may become more expensive because it is scarce and the demand might be more than the actual supply.

Final price

When the factors affecting gold supply and demand settle into place, factors are matched up, gold is traded and the price is determined.

Which device is right for an unlimited music service?

 

Currently there are a couple unlimited music services. An unlimited music service, for the purpose of this article, is an application, on the web or on a mobile device, that lets a listener choose which song he or she wishes to listen to. The user can listen to an unlimited amount of songs for a monthly fee. Certain electronic devices work better with certain company’s services. This article/document/lens will compare Google Play Music’s AllAccess unlimited music streaming service and the Sony Entertainment Network’s Music Unlimited service. Most importantly, it will explain which device is best suited for which service.

Google vs. Sony

The new Google service allows users to listen to millions of songs. It costs $7.99 per month if the user signs up before the end of June. There is a free option, however. The free and paid option will add songs from one’s iTunes music library to one’s Google AllAccess “locker”. The locker is where songs can be stored for offline playing. That is, when a device is not connected to the Internet, one can still play songs in their locker. Google’s AllAccess runs on computers and Android devices, such as the Samsung Galaxy smartphone phone or the Google Nexus 7 or 10 tablets.  There is not an app for this music service for iOS devices, which include the iPhone, the iPod and the iPad. This service is an alternative for users of Apple devices.

Music Unlimited from Sony works on a wide variety of devices, including its own tablets, Walkman music players, Android devices as well as iOS devices. Like the Google unlimited service, the Sony service works on desktop and laptop Internet browsers. Sony’s service is a good option for those with an iPhone, iPod or iPad because there is a functional app for those devices. The Sony service costs $9.99 per month after a 30-day trial period. Also, Android users can download songs from Sony to their tablet or smartphone for listening without Internet access, but Apple’s iOS device app users cannot take advantage of this feature. Still, the Apple device users can listen to music over Wi-Fi, 3G or 4G data connections.

Why sell gold at a pawnshop

If you have physical gold, there are several ways to sell it. It should be noted that there are several reasons why a pawnshop is a good place to sell gold. An expert at the shop can offer an appraisal in person and on the spot. The expert can also explain your options to you in plain English.

Online gold buyers

Many gold buyers that operate online are not as great as they may first seem. One should read the fine print

carefully before mailing away precious gold. Many online companies offer free shipping to their warehouse. However, what happens if you reject their offer? The site will ship the gold back to you. However, as some fine print indicates, the return shipping will be extremely costly. Also, what happens if the gold is lost in transit or by the company itself? Does the website offer full liability coverage? If not, then you might not receive compensation for your lost gold. Therefore, selling gold to an Internet entity may not be the best option for you.

Gold parties

One company sets up and runs gold Tupperware parties. At these house parties, the participants sell gold. The participants may not get a great price because the company as well as the host takes a portion of the sales. Additionally, the party hosts can weigh all of one person’s gold together, even if they are of different karats, and pay out at the price for the lowest karat. If someone has gold of different purities, which is measured in karats, then each piece could be sold at different prices per unit gold.

“Rogue” buyers

Some gold buyers travel. These often result in scams in which people sell the company gold at a hotel and the company leaves town before paying everyone.

The pawnshop experience

None of these situations would ever arise at a pawnshop. The professionals who work at a pawnshop are there to help their customers. They use correctly calibrated scales and understand the differences between different karats.

Source consulted: http://abcnews.go.com/Business/selling-gold-scams-beware-tips/story?id=14309128&singlePage=true#.UYF2zkpuolQ