As it was informed by "Market Leader (US)"
Is it time to invest in gold or to sell the precious metal?
As soon as the rumors that Greece may get another multi-billion loan reached the global markets the gold price decline slowed down. After that those who invest in precious metals focused their attention on the USA’s business activity and new jobs. Right after the official reports the trends reversed.
Everyone starts considering investment in gold as soon as some major events take place and can influence the exchange rate of EUR, USD, JPY or the price of crude oil and natural gas. What is this? Is it the echo of the golden standard times, when the US government guaranteed a certain amount of gold for each dollar or the desire to introduce a new standard of the global reserve currency?
Both variants are utopia. The USA would never be able to guarantee a troy ounce of gold for 35 dollars, as it was 50 years ago, while it would be impossible to exchange the existing global currency reserves for gold: the precious metal is not enough even for all the central banks, not to mention all the international financial regulators and private investors.
What is the basis of the gold hysteria? How considerable is the speculative component of gold price formation?