Prices were all low and produced the feeling of economical
Posted Feb 15 2013 7:59am
When a nation borrows money or improves its (fiat) money provide by printing, the value of its forex decreases. Gold, however, maintains its value. Thus, when the money loses value, the price of gold usually improves and viceversa.
Uncertain Conditions Today:
From 1988 through the end of 2001, through the market crash of 2000 and even 9/11, the price of gradually gold dropped while the dollar's value was erratic until 1995 when it improved considerably. Unemployment, blowing up, and prices were all low and produced the feeling of economical balance.
In Jan 2002, the price of gold started its improve from $280 per oz. to over $900 per oz. in 2008. During that period, the incidence of blowing up, interest rate, and the deficiency of employment rate all remained low, while absence investing and borrowing improved. Uncertainty started to build because of the wars in Afghanistan and Irak. Gold costs seemed to go up and down with the circumstances in the Middle Eastern, increasing with the deterioration in 2006 & 2007 and dropping in 2008 with the improvement in Irak.
Dire economical circumstances built up across the planet throughout 2008 and gold started a steep improve to its existing price near $1200 per oz.. There are many aspects for that. Unemployment improved and remained excellent. Deficit investing, financial debt, and money provide improves hurt foreign exchange and financial systems. While gold costs are most affected by the balance of the US economic system, deep weaknesses in the Euro and in many Western financial systems have contributed to the existing doubt.