- Posted August 7, 2013 by
Maidenhead, United Kingdom
This iReport is part of an assignment:
The written word: Your personal essays
TANA GOLDFIELD-Gold as an investment
Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Many European countries implemented gold standards in the latter part of the 19th century until these were temporarily suspended in the financial crises involving World War I. After World War II, the Bretton Woods system pegged the United States dollar to gold at a rate of US$35 per troy ounce. The system existed until the 1971 Nixon Shock, when the US unilaterally suspended the direct convertibility of the United States dollar to gold and made the transition to a fiat currency system. The last currency to be divorced from gold was the Swiss Franc in 2000.
Since 1919 the most common benchmark for the price of gold has been the London gold fixing, a twice-daily telephone meeting of representatives from five bullion-trading firms of the London bullion market. Furthermore, gold is traded continuously throughout the world based on the intra-day spot price, derived from over-the-counter gold-trading markets around the world (code "XAU"). The following table sets forth the gold price versus various assets and key statistics on the basis of data taken with the frequency of five years
The analysis of log-linear oscillations in the gold price dynamics for 2003–2010 conducted in 2010 by Askar Akayev's research group has allowed them to forecast a collapse in gold prices in May–July 2011. As of 18 July 2011, this collapse had not yet occurred, with gold at record prices of over $1600 per ounce. On 22 August 2011 gold reached a new record high of $1908.00 at the London Gold Fixing. The predicted collapse actually took place in August–September 2011.Yet, on 19 June 2012, gold zoomed further to INR 30,750 per 10 gm in the New Delhi, breaking its previous record of all time high. On 13 June 2012, gold prices breached INR 30,000 (Rupee) mark due to global financial uncertainty and touched the record high of INR 30,420 per 10 gms.
However, further collapse of gold prices was observed in April 2013.