Highly Prized and

Priced: The

Reasons Behind the

Fluctuating Gold

Rates

AAA Jewelers

601 South State Street

Salt Lake City, UT 84111

(801) 359-2035

Over the course of human history, gold has been one of the most prized assets

that determine the wealth of a person. In the early days, it became one of the

primary reasons behind wars; people also used it to pacify disputes and settle

any argument.

People’s fascination for this material continues. Gold remains one of the most

dependable items worthy of investment. In terms of functionality, certain

manufacturing businesses in the field of electronics and computing use it as a

component of their products.

Despite its significance across various disciplines, it is not exempted from the

changes and saturations on the market; its value also fluctuates.

Below are the reasons that move the prices of gold:

Global Demand

The law of supply and demand explains that a

commodity has a low value if its supply is

abundant. On the other hand, low supply and

higher demand means the commodity will get

expensive. Gold is expensive because the ratio

between the number of people wanting it and

the resource itself. Private individuals,

businesses, and even states all compete for this

prized item.

Exploration for the Material

As demands are great, those who sell gold

invest heavily in more explorations and

improvements of their production facilities.

Ancient gold, which used to be embedded in the

shallow layers of the earth, had been mined

already. This means that explorers will have to

dig deeper and work harder to find more gold.

This, in turn, leads to more expenses for the

explorers and the sellers. In exchange for all the

hard work, sellers are compelled to offer gold at

a high price.

Wars

Wars, natural disasters, and similar events may increase the inflation rate, which will affect

the value of currency. In times like these, people turn to gold. This is especially true when it

comes to national level, where officials trade with other countries using gold during times of

distress.

These are only some of the things that affect the valuation of gold. Those who want to learn

more about this should consult jewelers or investment strategists.

RESOURCES:

http://geology.com/minerals/gold/uses-of-gold.shtml

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/8180569/A-history-

of-gold.html

http://www.aaajewelryutah.com/engagement-rings/