What factors affect precious metal prices?

Precious metal prices are changing into response to economic events, decision on demand policy and social conditions such as war and unrest. Historically, investors considered precious metals to be a safe investment haven, and when the conditions are bad, the prices of precious metals tend to rise. When the economic and social climate is strong, with projections for a positive future, prices usually fall. Scientists can compare historical data on prices with the main events of the era to monitor the increase and decline in prices and their correlation with recessions, wars and other events. These metals are considered rare and have cited values ​​next to silver and gold, but their prices tend to behave differently because they are industrial commodities. Silver and Gold is more likely to be an investment.

for silver and gold, the power of the United States economy, especially Hjako, a deep impact on precious metal prices. When the US economy does not work well and the dollar is weak, prices often rise. Gold prices usually grow asThe first, because gold is a preferred investment and follows the silver. Smaller valuable metal shops for a fraction of the price of gold, which over time can move in response to changing market conditions and reduced stocks.

Changes in exchange rate, whether up or down, can cause precious metal prices because investors are reacting. Trends down tend to cope with the rising price for precious metals, while ascending trends move metals in the opposite direction. When the exchange rates stop, precious metals usually float around a small price zone. Investors can also respond to political decisions and main reports on topics such as budget, foreign investment and industry regulation.

Recession and depression of USUALLY lead to further speculation in precious metals because they are considered less volatile and more reliable investments in these periods. Investors consider expensive metals to be a trade in a goodU A can trust things like gold and silver, more than other types of available investments. Rising prices can rise in a long -term economic decline. As the economies begin to improve, investors tend to sell their precious metals, which can force the prices down because the market flood of metals.

Studies on precious metal prices sometimes indicate that they change in response to natural disasters and main political events. Looking behind the scenes, these events are often tied to the shift of the exchange rate. Changing the currency values ​​can explain changes in precious metal prices associated with these events, in which case the events are not directly responsible for the change in value. Investors can carefully monitor these messages whether the exchange rate is about to get or down, and could buy or sell premature metals prematurely to achieve a better market position. This, in turn, causes prices that people can falsely correlate with messages, not with the basic changes of exchange rates that investors expect.