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Saturday, 13 August 2011

Things To Think About Before You Buy Gold San Francisco

By Eleanor Thompson


The words buy gold San Francisco are as synonymous with each other as tea and Boston or oil and Dallas. Forty-niners with more money than sense would flock to the Barbary Coast, San Francisco's Red Light District, during the California Gold Rush of 1948-1855 to swap their precious nuggets for wine, women and gambling. The Golden Gate, the strait of water leading into San Francisco Bay, was named not for the rush that got the 49ers so excited, but to commemorate the Golden Horn at the entrance to the Bosphorus.

Coins and bullion become attractive as an investment if the value of the American Dollar is threatened for some reason. This may be attributed in part to the fact that while the available supply of the commodity is comparatively stable, the government can print money when they decide it's necessary, causing the value of the currency to go down.

If the value of the Dollar goes down, the price of precious metals goes up. If the Dollar increases in value, then the price of the precious metals may go down. There are, however, other factors that determine the prices of precious metals.

The true demand for a precious metal may, itself, go up or down. Their value is measured against six specific currencies including the US Dollar (USD), UK Pound, Euro, Swedish Krona, Swiss Franc and the Japanese Yen. If the ore goes up against all of these currencies, then it is reasonable to conclude that its true value has increased.

If the price of the commodity is higher in USD than in each of the other five currencies, this is an indication that both the USD and the commodity have grown weaker. The fact that the price of gold is quoted in USD gives the false impression that the ore has increased in value.

The foregoing does not constitute advice or a recommendation on whether or not to trade in this commodity. Always consult an expert in trading before making any chances to an investment portfolio. Read more about: buy gold San Francisco




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