"Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium." -Murray N. Rothbard
Known for its softness and
malleability, Gold had been a symbol of wealth, prestige, and power
throughout history. A valuable metal which brings fortune to whoever
manage to struck a nugget.
In the past, it defines how much a
currency may be valued. But nowadays, the game is changing and gold
has been forged into new form to adapt the modern times. Though its
still holds its former power, it evolved into new heights and became
a part of Forex trading.
A safe haven on times of great
adversity due to its stability and effectiveness in saving, gold also
proves to be a good source of bread and butter for some traders in
Forex. It all started after the right of individuals to posses and
acquire gold had expanded. After which, it revolutionized gold's
role to suit the modern times. It's former function was to serve as
a means of payment for goods and services but was molded as a traded
commodity whose market is far from the influential grasps of
governments.
Gold markets are classified into three
types: international, domestic, and black. The prominent
international gold market are located in Zurich, Hong-Kong, London,
New York and Dubai. This type of gold market usually involve big time
banks and companies who specialized in gold trading. Domestic gold
markets mainly focus on local investors may be further categorized as
open and regulated. Furthermore, black gold markets cater to illegal
transactions.
A gold market usually consists of
participants such as gold miners, the industry, exchange, investors
banking sector, intermediaries and dealers, and bullion market.
No comments:
Post a Comment