Gold Prices

Gold Prices

 

commodity prices expressed in gold.

Under the conditions of gold circulation, with free circulation of gold coins and with bank notes redeemable in gold, prices expressed in national monetary units corresponded to gold prices. Under the gold bullion standard and the gold foreign exchange standard, there was no substantial gap between prices in national currency and gold prices. However, with the liquidation of the gold standard, the introduction in capitalist countries of paper money circulation with a nominal gold content in foreign currencies, the increasingly frequent devaluations, and the formation of a free gold market, commodity prices in national monetary units ceased to correspond to gold prices. This discrepancy can be explained by the differences in commodity price fluctuations and the market prices of gold, differences especially apparent at the time of devaluation and revaluation of currencies. For example, after the devaluation of the pound sterling in 1967, commodity prices in Great Britain slowly increased and gold prices sharply declined. Under present conditions, gold prices in any country can be determined through the actual commodity prices in the national currency and the market price of gold in the given currency. In domestic commodity turnover, however, the gold prices have no practical importance. In international trade there are instances of contracts in which commodity prices are fixed in gold monetary units and payment is made in the national currency on the basis of its actual gold price (the so-called gold clause).

M. G. POLIAKOV

References in periodicals archive ?
KUWAIT, Oct 7 (KUNA) -- An economic expert predicted drop in the gold prices' levels again due to investors' preference of stocks and bonds, especially that high gold prices "previously relied on drop of the US dollar against major currencies.
Muscat: Softening gold prices are triggering a buying spree in Oman, said traders who have brought in more stock to meet the demand.
The revenue tax rate is set at the level of 1% and up to 20% of companies' gross income, depending upon world gold prices.
Gold prices are poised to drop next week, with several analysts saying an improving US economy could boost the US dollar, putting pressure on the metal's safe-haven investment allure.
11, 2013 /PRNewswire/ -- Gold prices have always been a thing hard to determine and the recent quick but significant volatility in the gold market only adds up to its long-known unstable history.
ISLAMABAD -- Gold prices are again witnessing an upward trend due to global cues after nose-diving in recent times and the fresh price of 24K per Tola gold is Rs54,600.
Gold prices sharply declined after the record spikes that it recorded since the financial crisis of 2008, by 24 percent, the largest such decline on records, to $ 1,283 per ounce compared to $ 1,675 per ounce at the end of last year.
Predicting a further decrease in gold prices, President of Sindh Sarafa Association Haroon Chand said while talking to a private channel, "Considering the current situation, gold prices are expected to go down to Rs42,000 per tola".
Global Banking News-April 17, 2013--HSBC says gold prices would eventually increase(C)2013 ENPublishing - http://www.
Gold prices have been one of the strongest performing investments this decade, rising from $282 per ounce at the beginning of 2000 to their current level of $1,648 per ounce.
To a certain extent, the plateau in gold prices has been caused by relatively secure economic conditions.
Summary: DUBAI -- The demand for diamond jewellery is on the rise this season as consumers have become more conscious about their spending pattern in the retail jewellery segment due to high gold prices in the market, a top official of a traditional jeweller said.