What Are the Gold Price Changes?
Against a background of the world inflation, durable devaluation of the American dollar and record oil prices growth the cost of gold reached another record level on the world market, which was more than $900 per ounce. And this precious metal prices have increased on 32% in 2007.
Moreover analysts are sure that the USA economy recession will urge the further gold price growth. But the other variant of the events development is also possible, and the analysts add that with a range of some factors a downward tendency can appear.
Such a swift gold market growth was caused by geopolitics and finance instability, which has been dominating at the world markets since august 2007. “As far as credit crisis is a bank crisis as the matter of fact it created perfect conditions to gold prices growthâ€, - supposes the consultation company VM Group analytic Matthew Turner.
Ad interim the USA Fed tried to fight with subprime credits crisis: it reduced the rate on 100 base points less than half a year before to prevent recession. But the Goldman Sachs investment bank analysts are sure that the USA economy won’t manage to avoid recession before it begins to rehabilitate after the crisis, reports Reuters.
The Merrill Lynch economists give more pessimistic prognoses. In their opinion the fact that unemployment level has increased on 0.3% and reached a record of 5% last year indicates that the entire recession has appeared in the USA and it happened in the end of the last year. “But recession is a positive factor for the gold market. The thing is that the USA economic growth slowdown will continue to reduce dollar and that will promote gold prices growth next 6-12 monthsâ€, - says the Merrill Lynch strategist Daniel Haines.
At the moment the situation happened on foreign exchange market is good for gold market. Dollar has sagged to the record low point with respect to euro and Swiss franc. And if Fed lows refinancing rate on 50 base points by the end of the month (as investors predict) it will lead to further American currency sag. In connection with that many experts are sure that gold price will reach a new record – 1000 dollars per ounce in the nearest future. “And even if recession doesn’t begin in the USA, economic indexes will remain rather distant, and that will promote the further gold prices growth “, - says the leading Capital Economics economist Julian Jason.
How To Spot Fake Gold Jewelry?
Where do fakes come from?
Fakes can be paid you by a swindler for service you rendered to him. Fake can also be left as a security for anything. You may ask: and what about carats? But, unfortunately, carsts cab be put even on iron pliers. So how to spot fake gold jewelry?
Here are some myths you should know.
Myth 1: “non-gold” becomes dark after nitric, hydrochloric and sulfuric acids.
Not always. In fact there is the only acid to spot the gold jewelry. It is “tetro-chlor-gold acid†or chloral gold which is a very expensive gold-bearing material. And a scientist can only work with it.
Myth 2. When throwing the gold ring to the table it has a special bell. In fact the bell we here is conditioned by a range of characteristics: the same gold ring can utter one way if it is treated by fire, and other way if it is deformed.
Myth 3. The “old†gold is better than the “new†one. This myth appeared when cheap Turkish jewelry came to the world jewelry market. In fact they are made of real gold by they are thin inside. And many consider it to be faked.
There are also many national ways about how to spot fake gold jewelry but in fact only a specialist can do that.
So, how not to buy a fake?
Buy gold only in the shops. It is practically unreal to buy a forgery at the shop. Having cash-memo and cash voucher and standard mark one can be quiet for his purchase. But in many countries swindlers take advantage of tourists’ language barrier and can easily sell you good brass jewelry and moreover provide you with a certificate in which it’ll be written: 18K GOLD!. And reading attentively one will just realize that the jewelry is only covered with 18K gold. Any way one should always find karats on gold jewelry.
So, one should always remember that there are MANY gold fakes in India, Turkey and China.
Here are the most popular imitating gold alloy materials manes:
Aluminum bronze – a gold-yellow color alloy, consisting of 90% of copper and 10% of aluminum.
hamiltonmetell – a golden-yellow alloy of 66,7% copper and 33,3% zinc. It is good for gilding.
goldin – an alloy of copper and aluminum, used in Germany for cheap jewelry manufacturing.
Mosaic gold – an alloy of 66% copper and 34% zinc with virgin golden tint.
palacart – an allay looking like platinum, consisting of 75% palladium, 15% gold and 7% silver.
electron – an alloy of gold and silver of different compound. Many antique coins are made og electron.