Why the prices of gold and silver affected by the fluctuations in international crude oil price? - silver price predictons
Why crude oil leads to fluctuations in the price of gold and silver?
What determines the price of gold and silver, but the fluctuations in the commodities market?
Tuesday, February 16, 2010
Silver Price Predictons Why The Prices Of Gold And Silver Affected By The Fluctuations In International Crude Oil Price?
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Hello my name is Sumit Chatterjee friend.
The precious metals prices, talk to ur a high value due to the high demand and limited supply snob appeal effet.But produces crude oil is still gold.Here Blak, the price is determined by its value or the value that useful is based.
Even the black gold and oil could also mean they have snob appeal, because it is now more expensive because there are only limited measures, which in the case of the two true if the metals.Hence oil price rises in the price of gold and silver at an average could fall as crude supply drops, and life becomes more precious.
In addition, demand for precious metals prices also depends on the demand for other metals such as platinum and its use value, and changes in consumer preferencesand, preferably, another form of consumption, consumption of these, etc.
Gold and oil prices are not dependent on each other for the rising or falling, but the dollar.
With a small pilot supply and demand.
The main influence on the prices at this moment is the weak dollar. It takes more money to buy valuable items now
. But this is is also affected to a lesser extent on the quantity of each product on the market.
In the future this may change to recover, the dollar, then it would sink.
Despite the OPEC could suddenly have a fit of madness and double output of oil, then oil prices would fall.
Production, or could be, smart and cut to protect their resources and reduce, then see the prices explode.
We can not say, gold.
OilExpendable is a product, but most of the supported gold is still there. It is a rare and produced millions of ounces per year, added to the offer. It relies almost exclusively on the U.S. Dollar.
They are due to the fact that prices are in U.S. dollars combined. U.S. dollar devalued against most everything else, so the price rises for everything else.
There are other mechanisms are at work. The prices of commodities are governed by supply and demand. We have to assume that the U.S. is a stable currency based on gold, the gold price would not change. However, would change the price of oil. There is a growing demand for oil and the supply seems to be declining. These factors suggest that oil prices even though the U.S. is rising-falling dollar.
Grandfather
The dollar falls, it is therefore more money to buy gold or oil.
The gold price is not affected by the oil price.
Is the dollar.
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