Ethics Paper

Medical devices such as stents, precision electronics and jewelry production account for approximately 66 percent of the global demand for gold. If demand for these items declines, the price of gold could fall.

But at the same time it can be worse that we have to limit the amount of money that is on hand. Which when limited can make depressions worse by limiting the amount of money that can be put back into the economy. In addition the price of gold is dependent on the global prices and what other countries store of gold amount up to. In addition if any other countries are starting to buy large amount of gold and if they are owning it or trading it with other nations. With the chances of gold fluctuating in price, due to the amount of gold there is in the world, what countries hold the lion's share of gold, and finally what is the current state of the world. In addition the gold standard is mainly used in capitalistic economy. This is due to countries that follow the ideals of communism do not believe in people making money but instead believe in the people supporting each other. But that could also harm the countries that follow the gold standard because those communist countries hold onto their gold instead of selling it or giving the gold to a different country. The reason they may hold onto this gold is that they hope other countries may follow their example and stop following the ideal of

It is very unpredictable due to constant change in the market. Each stage of the cycle differs on length of time based on market and outside factors.

The article I chose was from BloombergBusiness titled “Peak Gold is Looming and it Might not Change a Thing for Bullion.” In this article the writers Thomas Biesheuvel and Kevin Cowley begin by giving a query that as a general rule less supply of a product will cause the price of the product to rise as the demand stays constant or increases. They indicate, that as of the written date of this article, this was not the case for gold. Next the article goes on to explain this effect starting off by explaining to the reader that gold or bullion as it is referred too in the article is at a near 5 year low. Mining companies are finding that it is no longer profitable to continue with the current price of bullion on the market. The break even cost

This is the number one question we continue to get. Our focus remains on the underlying health of the economy in the U.S. and globally, as well as earnings growth and both are improving at accelerating rates. Barring any unforeseen events we expect 2018 will be another positive year for equities both in the U.S. and globally and believe the expansion could continue for the foreseeable future.

The stock market is like a playground for business. Business’s either collapse or succeed when stock prices go up or down depending on the market at the time; it’s like gambling. The stock market is a medium for business’s and investors who want to be part

Second, the examination of the price of gold is necessary to see if a transition back to the gold standard would help stabilize the U.S. dollar even more. To do this we will examine the price of gold over a 10-year span and 5-year span. Some say, that commodity backed currency, like the gold standard help stabilize inflation rates better than fiat currency. In theory, this is in large part due to the fact that gold remains to be a stable fixed priced asset (Wolf, 2001). We will examine the price of gold by looking at the highs and lows of the price of gold to determine if the price of gold remains relatively stable over time. Looking at the 10-year graph of the price of gold, the highest price gold was selling at was $1900.30 per ounce and it’s lowest was $709.50 per ounce. Over the past 5 years the high has been $1751.90 per ounce and the low has been $1050.60 per ounce (Kitco, 2017). Also it should be noted, that when examining the past 5-year graph for the price of gold, gold has been on a sharp decline the past 5 years. This price fluctuation calls into question Rolnick and Welser’s findings in their study. If gold backed currency is supposed to stabilize price inflation, shouldn’t the price of gold also be stable? Data on the price of gold, shows that the price of gold itself is not inherently stable. The recent fluctuations in gold pricing, does not call

In the past 12 months, the world’s stock market has experienced a particularly high degree of volatility that has never been seen in recent years. “On Monday 24 August 2015, about £74billion was wiped off the value of Wall Street and FTSE 100, and the Down Jones Industrial Average lost more than 1000 points at one stage on that day” (Allen, 2015).

The article, Why is the gold price falling and where is it going next? discusses the decrease of the gold price in the world market due to several factors including, the US federal reserve increase in interest rates, increase in the US dollar currency, Greek crisis and the China market slowdown. The US Federal Reserve plans to raise interest rates this year due to the improving American Economy. This means investors have other sources to generate higher income rather than investing their money into gold. The US economy is rapidly improving leading to the increase of the US currency. Prices of commodities such as gold will drop as the US currency increases, due to gold being traded in the international markets with prices quoted in the US currency. As the US dollar rises, consumers have less buying power and commodities become more expensive, muting demand and driving commodity prices lower. On the other side, investors in the Greek crisis are holding riskier investments with more profit due to the government bonds issued by Spain, Portugal and Italy earning higher rates causing the gold market to suffer. Furthermore, the slowdown in the Chinese market is a big blow to the gold market as China is the world 's largest consumer of commodities. The gold price slumped by more than 4% to $1086 an ounce overnight forcing the traders to sell 57 tons of gold in the Shanghai market. The sell off passed the $1100 barrier for the first time in five years causing the

The highest level was a local standard directing the amount and development rate of a country’s cash supply. Since new generation of gold would add just a little division to the collected stock, and on the grounds that the powers ensured free convertibility of gold into non-gold cash, the highest level guaranteed that the cash supply, and consequently the value level, would not differ much. Anyway occasional surges in the world’s gold stock, for example, the gold revelations in Australia and California around 1850, brought on value levels to be extremely insecure in the short run.

The third quarter of 2015 was no fun. Having been spoiled by six years of steady gains across all kinds of financial assets, we might regard the recent episode of market volatility as a rude intrusion upon our ongoing right to steadily increasing account values. Of course, it doesn’t work that way. Volatility in both directions comes with the territory for long-term investors. Indeed, in some academic circles the belief is held tightly that it is volatility, and only volatility, that entitles us to earn any return at all on our investments. Our willingness to endure the ebbs and flows of wealth over time, to put our capital at real risk, earns our ultimate compensation.

In the world economy, gold is one of the most complicated assets to price. Unlike stocks, currencies and other commodities, the value of the precious metal isn’t determined by fundamentals or supply and demand. Instead, it has been widely thought that gold moves inversely with the strength of the economy. When the economy is doing well and growing, gold prices tend to fall and vice versa when the economy contracts. This happens because gold holds high intrinsic value in the eyes of investors, whether its in the form of jewelry or financial investments. That said, many macroeconomic variables in booming and busting economies play a

Despite the recent rally, which was caused by the uncertainty in the stock market and the rising risk of a currency crisis in various countries, the supply and demand economics suggest the gold could decline from $1240 to $900 or less per ounce by the end of 2018. Gold is usually inversely correlated to the stock market and this explains the recent excellent performance of the gold. However, this recent spike can be a trap for investors. One of the largest asset managers on Wall Street, recently, placed about 20% of their asset portfolio in gold and several investors are following in his footsteps. This is such a highly speculative trade. In our opinion gold should not exceed 5% any asset portfolio. I

My basic study of bullion and specifically of gold & silver led me to the fact that though India is the largest consumer of gold & silver. India largely has unorganized gold market. The government policies regarding the same have also changed considerably over the years. From being a restrictive trade, now it has been opened up after the recommendation of the Tarapore Committee. Gold itself has a mass appeal in all the countries of the world and thus its prices are always under notice.

The prices of gold and the US dollar share different relationships in different circumstances. Gold is considered to be a hedge against inflation, recession, and other times of uncertainties, especially due to its high demand and finite supply. This precious metal was, for a long time in history, used as currency, and is still a safe haven for investors. Consequently, most central banks around the world invest more in gold to preserve their assets during volatile economic conditions. On the other hand, the US dollar is widely accepted as an instrument of the global currency exchange. Hence, most central banks also invest their funds in the US dollar. Indian gold prices have increased almost in the last few years, though there was one large correction in between gold and the dollar against rupees in 2010. From the beginning of July 2011 the pace of increase in gold prices has, however, accelerated the impact of the Indian gold prices is reflected in its domestic prices as well dollar’s value. Despite the sharp recent price rise, in India, demand for