Why gold rise ? Why bonds rise? Why stocks?

Question

What are the real reasons for the gold, bonds and stocks price?
What are the real factors that move up the price?

Answer 1

Supply and Demand.

Answer 2

Bonds move inversely to the price of stocks, when they don't the yield curve is called inverted and is not considered a good thing. Bonds are considered less risky and are also priced depending on what the Fed reserve does. If the Fed raises rates, like they have for the last couple of years, older bonds go down in price because newer ones can be bought at par, or close to it, at a higher interest rate. Stock are bought at auction and are priced at what the "market" thinks they're worth. Traders take into account all sorts of factors from inflationary factors (IE unemployment rates, interest rates, etc) as well as the performance of the company to come to a price they're willing to pay. Gold is a commodity that is priced based on demand and supply. If the economy is considered bad people buy gold as a hedge and the price goes up because there's a limited supply. Hope that helps.

Answer 3

When it looks like the world is going to hell in a hand-basket gold and bonds rise! When everything looks great stocks rise. It's really all about the fear factor. To define it beyond that is really meaningless for the average investor. But if you must when the dollar value goes down gold and bonds are used as a hedge against inflation. Paper money is really worthless at some point in time while gold always has a set value.

Answer 4

Gold rises and falls in direct relation to the confidence in the dollar and interest rates. Bonds are a contract that promises to pay an amount some time in the future greater than what you paid for it. Stocks rise and fall purely on speculation of the future value of a particular country.

Answer 5

gold rises with inflation which means the currency is being devalued