This is Saran from India........?

Question

This is Saran from India. I want to know why crude prices are incresing day to day and why America is fixing the price rate for Gold, Crude and other items

Answer 1

Baited question.

Crude prices increase (and decrease) on a day-by-day basis because of the traders who buy and sell crude futures (ie, the rights to buy or sell crude produced and on the market as of a certain date in the future at a certain price). The "closing price" is just that, the price at the time of closing. Crude could have been (and usually is) bought and sold for other amounts over the course of the day, although these prices tend to stick between the open and the close.

As far as America's "fixing" the price, America has an open market system that doesn't allow "fixing" to take place. If price fixing of commodities takes place, heads roll. It's the cardinal sin of financial markets to try to fix prices, and it's usually caught fairly quickly. If you wanted to know why institutions in America have more control over commodities prices than institutions elsewhere, that's because our financial markets are the most developed, have the most access to financial institutions (buyers and sellers of crude and gold, as well as finance sources to help leverage the purchases) and to the necessary information. The bulk of monies worldwide is also invested in dollar-denominated assets (which are hence managed by American entities) mostly because of the established security of these investments. Whether that security level remains over the course of the next 50 years is obviously a question, not so much for the possibility of economic collapse but rather for the potential of other nations to develop their own markets.

Answer 2

Do you have proof that we are controlling oil prices? If we are then give me the facts. Gold is publicly traded and when we loose confidence in paper money we usually buy gold. We believe that the middle east is raping us in the oil market.