how is the gold price determined? i need to know practical explanation?

Answer 1

The price of commodities is set by supply and demand. If the supply is limited, then generally the price will be high. People who really really want it will cough up the cash. If supply is too great, prices generally are low.
Money is no longer backed by gold. Gold, as a commodity, sells as if it were wheat, corn, orange juice concentrate, or whatever.
If you have gold to sell, a precious metals dealer will buy it from you according to the most recent price set on the commodities exchange.

Answer 2

Ft. Knox is in Tennessee, but the gold is no longer actually kept there. It's actually in New York City now.

The price of gold tends to go up when people are worried about inflation or geopolitical turmoil, largely because it has been valuable for several millenia, and the expectation is that if the dollar collapses and the world goes to pot, gold will eventually be valuable again. Its industrial uses only justify a price around $100 an ounce; the reason it's more expensive than that is that 1) it's used in the emergency-insurance fashion described above, and 2) it's used as a consumer good by women and men who want to attract them.

As the first guy said, supply and demand.

Answer 3

Gold is a commodity and the price is set by the simple economics of supply and demand on various commodity exchanges across the world, but..... it is quite odd that a metal which is essentially useless for anything but to floss some bling bling achieves such a high market valuation.

The uniqueness of gold lies more so in the demand function than in the supply. The supply is essentially like all other rare commodities, and generally speaking the supply doesn't fluctuate a whole lot from year to year in terms of tons of production. What does ebb and flow quite a bit is demand. 3 primary areas of demand exist:

1. Gold is considered a safe haven from currency devaluation, inflation, and world instability. Basicly an ounce of a gold is an ounce of gold. Even if the dollar loses purchasing power, in theory you can buy those cheap plastic things we all can't live without from China using gold instead of green paper. Thus it sort of acts as a currency not attached to any particular country's economy.

2. Gold is carried by most countries as a form of international reserve. These reserves are essentially a country's holding of wealth denominated in the currency of foreign countries and also gold, with these reserves used to settle the score for trade defiits and surplusses. Gold in this form can literally be used to buy those cheap plastic things, and international reserve demand is a major force in the market for gold.

3. People love to show off gold things. This has become more important as India and China obtain more wealth, since these cultures have stong demand for jewlery, and with their new found wealth, are entering the market to buy gold.

With those 3 forces identified, in general these things increase the price of gold: War, Inflation, Trade Deficits, Recessions, and almost anything else that causes a slow down in the general economy. The rationale for this is that investors flee earnings based equities (stocks) during tough times and move to "safe havens". This shift in flow of funds causes increased demand for a product in small supply and voila! the price moves fast.

Answer 4

For some top forecasts on gold’s direction, visit the site below:

I like the real GOLD nuggets.

As most gold is mined as very fine dust and tiny nuggets, the larger (over 1oz) nuggets are very rare! Actually they are as rare as large diamonds!

I would suggest you look into large nuggets!

To see the 'live' spot NY gold price and some museum size gold nuggets I suggest you visit a great site I found a few months ago. I purchase a few nuggets from them just about a month ago, and not only are they beautiful to look at but in just the last few weeks they have really moved up in value!

I'm actually saving to purchase others!

The site is:
http://www.california-gold-rush-miner.us
http://www.california-gold-rush-miner.us/australia-gold-nuggets.htm
http://www.california-gold-rush-miner.us/crystalline-gold-miner.htm
http://california-gold-nuggets-miner.blogspot.com

Answer 5

The first answer is right, I think the dept of treasury is in charge of keeping track of it all. Ft Knox is where the US portion of the gold is stored. I think that's in Texas somewhere.