How Is Gold and Silver Valued?

Whether it is about trading, mining, or recycling metals like silver and gold, it is important to understand how each is valued. Pricing metals is not the same as attaching a value to assets. Valuing silver and gold is something that consumers, miners and exploration companies must know their way around.

Where Does the Value of Gold and Silver Come From Anyway

Historically, people were challenged to come up with a form of currency. This medium of exchange was supposed to be practical and portable to replace the barter system, which landed them to the choices of metal. Unlike many other metals on the periodic table, gold and silver can be melted over flame to make coins, do not corrode, and are fairly rare in the world. Between silver and gold, gold stands out far better too as it is easier to recognize because of its unique properties like it absorbs some light when exposed to it.

Gold and silver do not have to have any intrinsic value. The rule of currencies is that it only has any value when societies determine a value for it.

Forward to current day and economies have applied a certain value on these metals, perpetuating their worth. Gold has always been the metal everyone falls back on when a specific form of currency does not work. Gold will always have some sort of value and act as insurance in tough times too.

Sources of Pricing

There are two types of prices. The market price at which something is sold or bought for fast payment and delivery is called spot prices while future price is simply the value at which participants enter an agreement contract to transact on a certain date.

Large Bullion Traders and Banks

Bullion traders and banks work with large volumes of metals with their clients. They sell and buy metal which becomes a part of their trading process. As a result, these work as reliable sources of valuing precious metals.

OTC Markets

This is a market of securities off the exchange market. Here people trade through the electronic network. Financial organizations work as market makers and bid a value that works as the spot price.

Future Values of Silver and Gold

Precious metals futures contracts are traded through major exchanges around the world. These exchanges are important sources for the future values of metals like silver and gold.

Fixing

Fixing is referred to the agreements between participants on one side in a market to sell or buy metals like silver and gold at a certain price while maintaining market conditions so that the price remains the same. This is done by controlling demand and supply to an extent. Throughout the proceedings as price is moved higher and lower as orders are changed until the time comes that orders are satisfied and price is fixed.

Sources:

http://www.investopedia.com/articles/investing/071114/why-gold-has-always-had-value.asp

https://www.goldbroker.com/investing-guide/how-gold-silver-prices-are-determined

Harald Seiz:  Gold and success — the two go together!

karatbarsHarald Seiz is the CEO and founder of Karatbars International. He lives and and works in Stuttgart and is able to travel the world to speak about being an independent adviser and entrepeneur. Seiz worked in the financial sector and was successful very early on; in the 1990s his company’s revenue reached over EUR 60 million. Since 2011 he has been the leader of Karatbars and has built the foundation from the ground up. The most important thing in his business philosophy is to “provide an effective means of securing financial freedom”.

As a senior executive, Seiz has been an independent investor working in the world of global finance for over thirty years. His focus is the expansion of his company on a domestic and global level, and to be assured that Karatbars International can be accessible to anyone and everyone. Originally involved with the insurance and real estate business world, Seiz has broadened his experience to coordinate Karatbars International and its scope to an even broader level. He feels very strongly that customers are the number one priority and he has a singular vision when it comes to assisting investors with advice about the market and where to find success.

Seiz has a razor-sharp focus; he is passionate about showing everyone a path to secure financial protection. The procurement of gold in small quantities with Karatbars International allows investors to have a tangible and solid investment rather than an obscure paper one. With the world’s finances all out of order and a new economic crisis at every turn, a method of money and payment that is constant and not affected by inflation or deflation is of the utmost importance. When investors can conserve their energy and focus on achieving personal goals then life can experienced on a higher level and personal financial security can be assured.

gold-bar-stackThe idea of gold’s importance has been constant for over 5000 years. In Greece, a tailor could sew a high-quality set of clothes for about an ounce of pure gold. Today, in 2016, a custom-fit, tailored suit will cost about an ounce of gold (of about $1300 approximately). Gold will usually hold its value and not fluctuate the same as other currencies. This is because there is a finite amount of gold in the world and as a fixed amount it is assured there is always a popular and very high demand.

Harald Seiz and Karatbars can help investors with financial security. Different than other investments, gold will always hold its value, always be secure and always be a precious commodity. Start investing today for financial security and peace of mind tomorrow.

(For more information please visit www.harald-seiz.de)

banner