Is Gold Is Good as Gold

In: Social Issues

Submitted By fawaz95
Words 391
Pages 2
is us dollar is good as gold
Let us consider about US dollars, it is the currency of the world’s strongest country,United States of America . It is the one of the country who uses the human resources very well. It has the biggest economy in the world. It is the world leader in technology( at the moment). It has a lot of influence in the United Nations. U.S is the country that pays more money to IMF.US dollars is internationally accepted currency for trade and exchamges. Besides being the main currency of the United States, the American dollar is used as the standard unit of currency in international markets for commodities such as gold and petroleum. most of the country prefer to do trade and exchange in US dollars,it is because US dollars shows steady growth irrespective of international situations with very meager exceptions. For example, petronas likes get paid in US dollars, they asked japan to pay them in US dollarsfor something related to petroleum.

Like ways, most countries would like to get paid in US dollars. Now, US dollars becoming as an world currency for international exchange and trade. US dollars is one of the mostly use reserve currency in the world. The United States dollar is the most widely held currency in the Allocated Reserves today. Throughout the last decade, an average of two thirds of the total Allocated foreign exchange reserves of countries have been in US dollarss. For this reason, the US dollars is said to have "reserve-currency status", making it somewhat easier for the United States to run higher trade deficits with greatly postponed economic impact or even postponing acurrency crisis. Central bank reserves held in dollar-denominated debt, however, are small compared to private holdings of such debt. In the event that non-United States holders of dollar-denominated assets decided to shift holdings to assets denominated in other…...

Similar Documents

Is Gold a Good Investment

...an overview of why gold is a good investment choice. I will give an analysis of gold’s current and historical prices, why an investor should invest in gold, and the wide range of options that are available to an investor that chooses to invest in gold. Gold is recognized worldwide as a true form of currency. It has a universal store of value; it can function as a hedge against inflation, protection against the declining value of the dollar and is a good option to sustain wealth in the declining financial market. Gold is a currency that option and is desired by many people, easy dividable, scarce, and durable. Gold had an intrinsic value before it became money and that is the foundation of its worth. Gold has increased in price over the last decade by 500%. In the increase in price is attributed to the drop in the value of the dollar and the expectation that inflation will rise to above average levels. Gold was valued at $900 an ounce in April 2008, $1,888.70 in August 2011 and as of July 25, 2012 it was valued at $1,608 an ounce. Through March 2012 the spot price of gold returned of 18.5 percent, while the S&P 500 has had a return of only 4.11 percent. The chart below shows the increase in gold prices for the last ten years and gold’s performance price for the last 30 days, six months, one year, and the last five years. 10 year gold price history in US Dollars per ounce. http://goldprice.org/gold-price-history.html ......

Words: 3683 - Pages: 15

Gold

...Gold as an investment option | | Mayank Chandola MBA in International BusinessSymbiosis Institute of International Business | | Table of Contents History of the yellow metal 2 Why it is attractive? 3 Portfolio diversifier 4 Inflation hedge 4 Investment risks in Gold 5 Risk with physical gold 5 Political Risks 5 Market Risks 5 Exchange rate risks 5 Demand/Supply side risks 5 Outlook 6 References 7 History of the yellow metal Gold has always been used as a medium of exchange for goods since ancient times and has not suffered devaluation in the same ways as paper currency. Gold has a record long history as a commodity and as a store of value. It has been formally a monetary media in and around the world. Gold has faced complete official demonetization long back, yet it experiences continued and renewed interest as a private or unofficial monetary medium. Even governments around the world are making greater use of gold in international financial affairs. Over time, gold has undergone three major transitions: 1. Gold was a medium of exchange in the early civilization 2. Next, an international banking system was developed around it, in which paper money was fully convertible into gold 3. This convertibility was ceased in 1971 by the then president Richard Nixon and a purely fiat money system took its place. Early civilizations equated gold with gods and rulers. Humans almost intuitively place a high value on gold, equating it......

Words: 1695 - Pages: 7

Gold Report

...Gold Fundamental Report February 2012 Disclaimer This report has been prepared by the Knowledge Management Department of NCDEX Limited for the purpose of information dissemination. The facts are reported from publications and have not been checked for authenticity. NCDEX and its employees will not be responsible for any decision taken by the reader based on this report and are adv advised to take independent advise on the commodity(is) dealt in this report . For more information contact Ashwin Dilip Vidhate Knowledge Management Group NCDEX Ltd. ashwin.vidhate@ncdex.com +91 022 6640 6836 2 Table of Contents 1. Introduction ....................................................................................................................................................................................... 4 2. Gold supply ........................................................................................................................................................................................ 5 Gold supply: Indian scenario............................................................................................................................................................ 14 3. Gold demand ..................................................................................................................................................................................... 15 Gold demand: Indian scenario ..................................................

Words: 12225 - Pages: 49

Gold Investment

...Gold bonds right solution to reduce gold imports 7 Feb, 2013, 0325 hrs IST Also, traditionally, gold jewellery is seen not as an investment tool, but more as a symbol of social status, fashion accessory and family possession. By: Jignesh Shah It is common knowledge that by tapping Indian household gold through gold bonds, the country can reduce imports of the yellow metal significantly. However, gold bonds have so far failed to fetch good response. And there are many reasons for this. Indians have a passion for holding jewellery. They do not wish to part with their ornaments. Also, traditionally, gold jewellery is seen not as an investment tool, but more as a symbol of social status, fashion accessory and family possession. Ornaments have aesthetic value too. People pay up to 10% making charges for ornaments. Even if gold is returned to a depositor redeeming her deposit certificate, she will not get ornaments in their original shape. She will only get a gold bar or coin instead of ornaments surrendered by her. If the government offers higher rate of interest, there is a chance of interest-rate arbitrage between international gold leasing rate and the interest on gold bond. Today, gold lease rate moves around 1-1.5% per annum in the international market. If the government offers an interest of 4-5% per annum on gold bonds, bullion importers may import large quantities from international suppliers on lease basis and convert the same into gold bonds. If the......

Words: 2303 - Pages: 10

Gold

...old Price Forecast 2013 Predictions and Estimates from Multiple Analysts The Gold price forecast for the year 2013 has been covered by multiple analysts. Here is their consensus: While the price of Gold has a gamut of forecast ranges for 2013, most experts remain bullish on the yellow metal for the year, though some have scaled back their estimates slightly over the past few months. A compilation of their predictions are listed below. Bank of America Merrill Lynch In a December 2012 report, Bank of America Merrill Lynch stated that Gold would average $2,000 in 2013, with the metal climbing to $2,400 in 2014. “Large-scale policy easing by the U.S. Federal Reserve and European Central Bank positions Gold as a useful hedge against global macro and inflation risks taking the commodity to $2000/ oz levels”, said the bank. The bank added that, “We have a sixmonth [Gold price] target of $2000 an ounce, but see scope as well for prices to rise to $2400 an ounce by the end of 2014. These targets reflect our view that the Fed will maintain mortgage purchases until the end of 2014 and will move to buy Treasuries following the end of Operation Twist in December 2012.” BNP Paribas BNP Paribas expects Gold to average $1,865 an ounce for the year. “Market sentiment towards Gold has been much more uncertain in 2012 than was the case in previous years. Yet, we expect Gold to achieve a new record high in 2013 due to further monetary easing, less tail risk related to a breakup of the......

Words: 9281 - Pages: 38

Gold Rush

...TH 330 – American Cinema January 29, 2010 Gold Rush Does any movie require a happy ending? Charlie Chaplin added his twist to the meaning of “happy endings” when he directed the film Gold Rush. Even when the movie business was in its early years Chaplin recognized that a happy ending could have a variety of meaning. Furthermore, he tantalized the audience from every angle with his resourcefulness and quick wit. In Gold Rush, Chaplin easily makes fun out of being poor and destitute. For one thing, he was able to turn the hazards and tribulations of “coldness” into comedy. In essence, I am referring to the coldness due to the weather and of some people’s reactions to the Little Tramp. I thoroughly enjoyed every minute of the movie even though it highlights the many aspects of desperate men and women who are willing to put their bodies through immense hardship in the pursuit of gold. For sure, the Little Tramp is by no means on physical par to the other men in the movie; however, he always has an ingenious way of getting what he wants, even the girl. For example, when Big Jim imagines that Charlie is a chicken and runs after him with an axe, Charlie mistakenly shoots a bear and they have food for days. Then, Charlie meets another prospector who lends him his cabin and all he had to do was simply take care of the cabin and the mule. Chaplin was able to pull the audience into the movie; he would have them laughing at one time and sad in the other instance. The film......

Words: 772 - Pages: 4

Gold Standard

...to the book, a gold standard is a diagnostic test that is assumed to be able to determine the true disease of the patient. The gold standard is said to have known validity and reliability, and is used as a benchmark in which other diagnostic tests (screening test) are compared to. In the study, hearing loss is observed in one hundred and seventeen patients with a history of hearing loss, undergoing pure tone audiometry (PTA) for the first time. The patients in the study were divided into two groups, one of which reported increased TV volume and the other reported no increase in volume. The screening test in the article is the diagnostic utility of using television volume as a marker for hearing loss. This screening test is compared to the gold standard for hearing loss which is known as a pure tone audiogram (PTA). Each patient’s PTA was used as a reference standard. The results of the experiment indicated that if the patient reported viewing television with an increased volume, then there was a 68 per cent chance of the patient have a hearing loss of 25 dB or more. Although the study concluded that self-reported television volume can be a useful screening tool in patients presenting with hearing impairment, it is not very specific and should not be used to replace the current gold standard to measure hearing loss. Increased television volume had a sensitivity of 81 per cent and a specificity of 52 per cent as a predictor of hearing loss. A hypothetical ideal gold standard......

Words: 376 - Pages: 2

Gold

...contracting. The Chicago Board of Trade was the first commodity exchange in the United States of America to be opened in 1848, and is still the largest exchange as well. The futures contract was developed here in the 1860s. The New York Cotton Exchange founded in 1871 was also among few other early United States exchanges. During the Great Depression of 1933, the Commodity Exchange, Inc. was established. It was started in New York and by the merger of four smaller exchanges - the National Raw Silk Exchange, the Rubber Exchange of New York, the National Metal Exchange, and the New York Hide Exchange. India has a link with the commodities market as India is an agro based economy and is the largest consumer of gold, which provides a huge market for both Agri-commodities and gold. India has a huge spot market for all these commodities E.g. Indore has a huge market for soya, Ahmadabad for castor seeds, etc. During pre-independence period also there was a demand for these commodities. In the mid 1960’s due to war, natural calamities, etc the trade of these commodities was banned in India....

Words: 380 - Pages: 2

Gold

...Gold Anonymous. Metal Bulletin Monthly 418 (Oct 2005): 50-51. Abstract (summary) Pure - or 1,000 thousandths - gold is equivalent to 24 carats, but gold is generally used as an alloy because it is such a soft metal. The jewellers' terms "fine gold" and "pure gold" mean 920 and 840 thousandth alloys respectively, the balance being supplied by copper. The addition of copper produces red and pink golds, while deep yellow gold is practically 100% pure and "white gold" is often a gold alloy containing nickel and palladium. Pure - or 1,000 thousandths - gold is equivalent to 24 carats, but gold is generally used as an alloy because it is such a soft metal. The jewellers' terms "fine gold" and "pure gold" mean 920 and 840 thousandth alloys respectively, the balance being supplied by copper. The addition of copper produces red and pink golds, while deep yellow gold is practically 100% pure and "white gold" is often a gold alloy containing nickel and palladium. Full Text Gold is among the oldest metals known to mankind, over whom it has often exerted a compelling force of attraction because of its rarity, lustrous beauty and permanence. A sun-yellow ductile metallic element, gold mostly occurs as nuggets in rocks and alluvial deposits. It has a high melting point (1,063°C) and is one of the best conductors of heat and electricity, as well as being resistant to corrosion, except from chlorine, fluorine and aqua regia acid. It is one of the densest elements at 19.3 g/cm^sup...

Words: 1615 - Pages: 7

Gold Standard

...Gold Standard By phil42 | Studymode.com With the Gold Standard, the US economy would print currency that equaled a specific value of gold. Meaning, you could cash in your money for a specified amount of gold because a unit of currency = a specific amount of gold. The limitations to Governments was that they could not spend what they wanted because the amount of currency in circulation had to correspond to the amount of gold in reserve. Nixon, eliminated the Gold Standard, I think during the Vietnam war. As a result, the currency in circulation today does not have to be backed up by anything, not gold, not anything. That's why we see trillion dollar deficits today. Politicians can spend what they want regardless of the real economic downfalls that eventually have to be dealt with. Nowadays, on a side note, our US debt is fianced by foreign governments such as the Chinese and others. This means most of debt the US government owns is owed to foreign investers. The answer to whether having Gold Standard is good or not is based on who you ask. Economists will have one answer, politicians will have another. The phrase “gold standard” is defined as the use of gold as the standard value for the money of a country. If a country will redeem any of its money in gold it is said to be using the gold standard. The U.S. and many other Western countries adhered to the gold standard during the early 1900’s. Today, however, gold’s role in the worldwide monetary system is negligible....

Words: 4795 - Pages: 20

The Gold

...begin and end an informal letter like this? Make a list of possible opening and closing phrases. Opening phrases closing phrases e.g Hi John Best wishes 1...................... .................... 2..................... ..................... 3......................... ........................ 4.......................... ........................ 5.......................... ........................ 2nd step: Use your imagination and imagine a good description for a restaurant. Talk about the location, the time you went there and your purpose of being there. 3rd step: Describe the restaurant. First describe the outside appearance, and then inside. Describe the general atmosphere. 4th step: Imagine what you ate, and make a comment on the food. 5th step: Write your own full answer to the question above. Note: when you write in exercise 7, use your imagination as much as possible. But remember that your answer must always be relevant to the question. Besides, one way to improve writing is by using more adjectives and adverbs....

Words: 634 - Pages: 3

Gold Rush

...where the American Dream came true for many. Before the gold rush, California was under the Mexican rule since 1821. California’s population mainly consisted of about 6,500 Californios, 700 Americans and 150,000 Native Americans. Most of the Californians lived on vast ranches granted to them by the Mexican government. New settlers, mainly Americans, started moving into California for land and trade. Mexican control over California weakened following the Bear Flag revolt by the settlers and the United States took control of the region. The United States waged war against Mexico for manifest destiny and a dispute over Texas in the Mexican–American War on May 19,1846. The Treaty of Guadalupe Hidalgo between United States and Mexico ended the war officially on February 2,1848. California was handed over to United States. Neither the United States nor Mexico knew that gold had recently been discovered in California in 1848. The discovery of gold set off a major historical event in California, the California Gold Rush! James Marshall accidentally discovered gold while at work on January 24,1848 in Coloma, California. He was a carpenter building a sawmill on the banks of the American River at Coloma for John Sutter, a Swiss immigrant to California who founded the Sutter’s Fort in Sacramento. On January 24, 1848 James Marshall noticed tiny golden flakes sparkling in the American River and was astonished to find that it was gold! He reported this to John Sutter and they......

Words: 1547 - Pages: 7

Gold

...government. Gold has real value due to its beauty, usefulness, and scarcity. * With a fiat currency the government can essentially manufacture money virtually out of nowhere. Since leaving the gold standard in 1971 US currency in circulation increased from $48.6 billion to over $1 trillion dollars in 2012. Between 1971 and 2003 the entire supply of money in the United States has increased by 1,100%. Under a gold standard, new money could only be printed if a corresponding amount of gold were available to back the currency. * Since leaving the gold standard in 1971, inflation has reduced the value of the dollar, and inflated the price of oil about 32 fold. In 1973, Saudi Arabia agreed to trade oil only in dollars. This created a new international demand for the fiat dollars the Fed was now printing and as more dollars flooded the world, general inflation in oil prices followed. When on a partial gold standard in the 1950s and 1960s the nominal price of oil was stable, averaging $2.90 a barrel. By June 2008 the nominal price of oil hit $126.33 per barrel * Since gold is a finite natural material, and must be mined and processed at a significant cost, it tends to be produced at levels consistent with demand. Under a gold standard, creating more currency requires obtaining more gold, which raises golds market price and stimulates increased mining. More gold is then used to back more money until a point when currency levels are adequate, the price of gold levels out,......

Words: 879 - Pages: 4

Gold

...Amundi, Nomura, Credit Suisse and JP Morgan Proprietary research by leading regional financial institutions and brokerage firms in China, Hong Kong, Japan and India Industry promotion bodies such as the world Gold Council and the Silver Institute Annual reports and investor presentations by a core group of 150 public companies countries from India, Hong Kong, China, Europe, USA, Australia, Canada, South Africa, South East Asia and Zimbabwe. T h e s c o m p a n i e s operate in various industries including the diamond industry, luxury goods industry, precious jewellery retailing industry and general retailing • • • Earnings call transcripts which are extremely useful Industry trade publications International and regional financial news organisations Nevertheless, analysis of data and trends is an art. For the most part, our researchers at Equity Communications are our greatest asset. In the following pages, you will discover our views on the consumption of precious jewellery in India as well as discover our ideas on the likely direction of such consumption in the future. You will also get to find out why we selected India as the most promising market for precious jewellery for many years to come. For our purposes, we define precious jewellery as jewellery pieces made of gold, platinum or silver, in their pure form or combined with other lesser metals like copper. Such jewellery pieces can be in plain form or gemset precious jewellery. In the gemset category, this report......

Words: 40024 - Pages: 161

The Gold Standard

...Introduction The gold standard is a special form of monetary system whereby the standard unit economic account relies upon a fixed mass of gold (Mayer 76). With respect to this definition, the gold standard is thus a monetary system whereby the value of currency of a given country is determined by a fixed mass of gold. In addition, the domestic currency of such a country can easily be converted into gold. To ensure that the domestic currency of a country can easily be converted to gold, the amount of money that is in circulation is normally equivalent to the gold reserves that that a specific country has. In addition, countries that use the gold standard usually make their international payments in gold. The exchange rates between countries normally remains constant. This is due to the fact that their currencies are valued using their gold reserves that are based on the specific gold weights. As a result, no country can take advantage of the other in the course of international trade. Ever since the days of early civilization, precious metals and stones have been used as a medium of exchange. In ancient Egypt, Rome, Greece, China and India, precious metals and stones have been used as a medium of exchange for goods and services in both domestic and international trade. Gold, silver and bronze were perhaps the most widely used metals during those times. This is because they held desirable properties that made them fit for these purposes. They were portable, rare,......

Words: 1522 - Pages: 7

Download | GENERAL (1) | Rallonge Suisse Tige de remontoir de montre Dim de 0,5 à 1,4 mm Stem extension-