Below are the 2 most recent journal entries recorded in roweclement7530's InsaneJournal:

Saturday, October 8th, 2011
12:29 am	Where does the spot Gold and Silver prices come from? Initially before we take a short look at the effect of speculation on 2011 gold and silver prices, i consider it is deserving to talk a little about spot prices. I will focus on this subject at the start of the article|, then focus at how traders can get in the job of investing in gold and silver today and finaly focus on the topic of speculation in relation to 2011 gold and silver prices. To understand where spot gold and silver prices arise by, we need to fall back to fundamental principles - value the bare english term "Spot". As you might have guessed it implies instant or merely today! So the spot price of whatever precious metal is the value for cash (immediate) settlement. So taking this undertanding to Gold and Sliver, Spot Silver or Spot Gold then is the price for cash on the day or alternatives the the present delivery gold and silver price as traded on the on the spot market. The latter definition predicates that there're additional marketplaces other than the immediate one. In precious metals one such market is the futures market. There is a very solid connection between this future market and the spot one. In reality the the spot gold price or spot silver price rests on the price of "futures" contracts dealt on "futures exchanges" which operate all over the world. The biggest three markets are based in London - London Commodities exchange, and the United States - Commodities Exchange (COMEX) and New York Mercantile Exchange (NYMEX) Gold and Silver prices in the spot markets is ordinarily provided in American Dollars though also converted to additional big currencies around the globe. Buying physical gold from the 3 markets mentioned earlier is quite involved. As such most people find it is a great deal valuable to buy touchable gold or silver in tinier amounts that is 1 ounce bullion bars and gold/silver coins from sellers outside these big market. In most cases there may really differences in these market prices on the various markets. A good place to check silver bullion for sale or those of gold is on prices for items sold on Amazon. So now that we have a summary picture of where prices come from, let turn to speculationSpeculation has played a central role in molding the gold and silver prices on the spot market. An example is the silver bubble of 1980 driven by the Hunt buddies who powerfully bought Silver for seven years therefore driving the price to an all-time point of $50/ounce. This year, 2011 there's high speculation that spot silver prices could arrive at the high level again in 2011 zoomjng ahead ahead of spot $$. III famous metals insiders have each speculated the prices to range between 38 bucks to 45 bucks (with an odd $50 being thrown around the market). Their forecasts have already pushed the silver prices in 2011, therefore illustrating how important speculation can be in this industry. Thus far spot silver have arrived at a 3 decade high and up 31% already for 2011.Tied in with speculation, 2 factors have been attributed to the spot price going up firstly Silver is setting out to get in the mainstream of investor awareness and secondly since its currentky a tiny, tiny market its very explosive thence prices rise up rapidly. Though gold was the hot investment in 2010, this year silver seems like it has taken the forward lead (thanks to speculation) in the race to be this year's treasured metal winner. Additional Resources Gold and Silver Prices Today History of Gold and Silver Prices (Comment on this)
12:20 am	The story of Gold and Silver Prices In an age of uncertainity, whenever markets are precarious, Gold & silver are frequently considered as stellar investments. From roughly the mid nineties the gold & silver prices have ascended upward a firm curve. Such a firm unfaltering climb in value made several dealers and investors to buy such precious investments as Gold and Silver. Those that invested their funds or cash on these metals have drawn massive benefits as the spot silver price and that of Gold has steadily ascended. Despite the global meltdown recently experienced, gold & silver prices went against the tide to an all new peak.In order to fathom what i am implying here, just take a look at the latest spot silver price (tho' over the last few days, this had been ensnared in a minute trading space between $35 and $42 per ounce) vs the historical prices. Thus if Gold & Silver prices have defended their position across time, the biggest wonder that begs to resolve then is what truly effects these prices?. I will address three central ingredients that are behind these prices. 1. In economic terms, the single major determinant of any product is demand and supply. Gold & Silver prices are contingent to these forces. Investing in these instruments is surely a reasonable and considered act, altho it does come with a big !. WHY is this so? Well since a lot of people realise the profitability in holding gold or silver, its demand is really high, hence the spot price silver or gold rocks from day to day due to the immense demand and later handled volumes. 2. Politics of the economy. Events such as war, bulging country shortfalls and geo-political unrest have effect on gold & silver prices. The grounds for this is elementary, in periods like this, most investors rush to procure gold and silver to preserve the worth of their income, thence again pushing demand, whilst supply holds static or really declines. The matters presently happening in the Libya, Tunisia, Iraq today etc are all affecting price of gold and silver prices today. In principle gold and silver are global reserved currency of the world. Thus, if anything takes place around the world thus it surely affects the gold and silver price. 3. The final component i will turn to in brief is the relationship between the the gold & silver prices and the value of the American dollar. In the economic metals market the price of the precious goods is determined by the value of US$. This is wherefore when the value of US $ goes down, metal prices goes up and vice versa. Whilst the value of US$ goes down than commodities get cheaper for the buyers, which bring on the buying and raises the price of gold and silver. As an investor or future metals investor, understanding the elements that regulate gold and silver prices is fundamental if you prefer to break a benefit. There are numerous elements that determine these prices and I address iii crucial ones, viz Supply and Demand, the political economy and the value of the US $. Additional Resources (Comment on this)