Generally buy top buyers of gold and institutions of the big banks.
And London are instant global market for gold as the center is settled trading at about $ 20 billion through the settlement system in the London daily. To avoid the risk of cost and security risks not being transferred usually gold, and transactions are settled through paper transfers.
Another key Instant markets for gold are: India, China, and the Middle East, Singapore, Turkey, Italy, and the United States.
2. futures markets:
Investors can also enter the market through the futures exchanges; as investors trading contracts to buy or sell a particular commodity at a fixed price, date certain delivery in the future.
The market Comex in New York Mercantile Exchange, is the largest market in the world for gold futures contracts in terms of volume. TSE and commodities which is reputed as TOCOM, is the most important futures market in Asia.
China launched China’s first stock exchange for gold futures contracts on the ninth of January, 2008. It was also the launch of futures exchanges in several other countries, including India, and Turkey, as well as Dubai.
3. traded funds:
Attracted media coverage and a wide range of high gold prices also investments in ETFs, which issue securities backed by the yellow metal.
This allows investors to benefit from the potential of the gold market without receipt of the metal itself.
And it rose gold holdings to the feed box. Me. De. R. Gold Trust, the largest gold trader Fund powered to a record 1289.839 tonnes in June 2010. The fund’s holdings equivalent to more than half of global mine supply annually, valued at prices that month, about $ 51.8 billion.
Among other gold-backed ETFs iShares COMEX Gold Trust Fund, and the Fund Gold Bullion Securities Inc.’s iPod. T. F Securities and Fund Aye. T. F. Vezekl S. Gold, and Gold Fund Vezekl of the Zurich Cantonal Bank.
4. bullion and currencies:
Local investors can buy gold from metals who sell bullion and coins in specialist shops or on the Internet traders. And pay a premium in exchange for a small investment products increase between five to 20 percent on the spot market price based on the size of the product and the level of demand.
(B) the main drivers of prices
Still growing interest in investment commodities, including gold in recent years, a major factor behind the rise in precious metal prices to historic highs boxes. And attracting strong performance of gold in recent years more investors as cash flows increased to the market in general.
2. US dollar:
Despite the recent decline winning in the usual strong correlation between gold and the euro exchange rate against the dollar, the currency markets are still a long-term play a key role in determining the direction of gold.
Usually represents the gold and attractive hedge against currency weakness. The weakness of the US currency makes dollar-denominated gold also dirt cheap for holders of other currencies and vice versa.
But this link sometimes breaks down in times when the financial markets are under pressure on a large scale with gold and the dollar both benefit from risk aversion. And record positive link between them range in late 2008 and in 2009 after the US bank Lehman Brothers crisis.
Gold historically has been associated closely strong crude oil prices can be used as the precious metal as a hedge against inflation, which oil is the main cause. And enhances the rise in crude prices of primary commodities as an asset attention of assets.
3. Financial and political tensions
Gold is considered on a large scale safe haven in times of uncertainty.
And often result in tremors that affect the financial market, as happened in the wake of the collapse of Lehman Brothers in 2009, and in the nearest time, as in the case of the worsening euro zone debt problems to enhance the cash flows for gold.
And it may result in major geopolitical events, including: the bombings, and terrorist attacks, and assassinations to higher prices.
4. central bank reserves of gold:
Central banks possess gold as part of their reserves. And it can affect the purchase or sale of the banks went on prices.
On the seventh of August August 2009 a group of 19 European central banks agreed to renew to limit gold sales agreement, was signed in 1999, it was renewed for another five years in 2004.
The agreement stipulates that the maximum annual sales is 400 tons, down from 500 tons in the other agreement for which ended late September / September. And sales are still low in light of the new agreement.
At the beginning of the twentieth century atheist and when gold was languishing near the level of $ 300 an ounce, gold producers sold a part of their production is expected to deliver on the promise of gold in the history of the order.
But when prices began to rise suffered losses, and the event went towards the purchase of a fully hedge their positions to take advantage of high market prices in what is known hedge liquidation centers.
The large turnout could lead to the liquidation of the hedge positions by producers to strengthen market sentiment, and support gold prices. But the liquidation of the hedge centers slowed significantly in recent years with the shrinking size of the global hedge.
6. supply and demand:
General supply and demand factors do not play a big role in determining gold prices because of the large stocks, which have been extracted, and which is now estimated at about 160 thousand tons more than 60, for example, the annual production of the mines.
Gold consumption is not being other primary like commodities.
The cause overbought in the main consuming countries seasons, such as India, China, UAE, Egypt and some impact on the market, but other factors such as the dollar and oil prices pose a greater impact