Gold Prices

The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

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

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
KARACHI -- Gold prices registered a dramatic decrease after a week of gradual price increments.
"Jewellers have not only passed the increase in international gold prices on to domestic consumers, but they have also incorporated the impact of rupee depreciation against the US dollar into retail prices," an officer-bearer of ASSJA said.
Gold prices. The actual cost to the gold shopper today (Friday) would be Dh167.75 a gram, which includes Dh8 VAT.
KARACHI -- Despite one dollar per ounce rise in world gold price to $1,337, domestic gold prices on Thursday hit an all time high of Rs73,200 per tola and Rs62,757 per 10 grams, showing a jump of Rs600 and Rs514 respectively than the rates prevailing on Wednesday.
KARACHI -- Gold prices shot up by Rs600 per tola (11.66 grams) to a six-week high at Rs71,700 in Pakistan after the government let the rupee depreciate by 3.6% on Thursday.
Gold prices will remain subdued in the second quarter due to the strengthening US dollar, concerns over the global economic slowdown and Brexit chaos, giving a good opportunity to buyers to cash in on the lower prices, analysts and jewellery retailers have said.
Russia's Alfa Bank does not exclude a rise in gold prices above $1,400 per ounce in 2019, Boris Krasnozhenov, head of the bank's analytical research department, told Trend.
Muscat: Gold prices rising slightly won't have a negative effect on sales, jewellers have said.
KUWAIT, Sept 9 (KUNA) -- Global gold prices continued dropping for the fifth consecutive month below USD 1,200 per ounce, affected by the US dollar's strong performance, said Sabaek Al-Kuwait for precious minerals company.
The World Gold Council expects that the gold prices may increase again in the coming period, after gold fell to a 20-month low amid sharp Emerging Market (EM) currency depreciation.
Gold prices have surged $100 an ounce over the past seven weeks, closing Friday just under $1,300 an ounce, settling at their highest price in almost three months.
Key Words: Gold Prices, Oil Prices, Asymmetric Causality, Positive Shocks, Negative Shocks.