South Africian Gold Price Charts
Compared With USD Charts
The Gold Standard:
The gold exchange standard, instituted at Bretton Woods after the Second World War, functioned until the 1970’s when it broke down due to inflation and the excess supply of the U.S. dollar held externally of the United States. Once Bretton Woods was abondoned in the 1970’s, the prevailing market force of supply and demand dictated exchange rates. The main feature of this period of time was an utmost precariousness, which led to the market deregulation, open trade and a jump in speculators. The introduction of computerized transactions has contributed to the principal business concern of the international money exchange comprising speculation in the futures of alternate monetary values, instead of purchasing and selling of commodities. This ultimately gave rise to the Foreign Exchange Market.The Foreign Exchange Market (FOREX) is the largest marketplace in terms of the overall amount of hard currency exchanged, with an mean daily amount that is in excess of than $1.9 trillion US dollars.
The principal participants in FOREX trading are: governments and central banks; commercial banks; investment banks; hedge funds; commercial enterprise; retail consumers; major investors and independent investors. The FOREX trading regulations are very unfavorably biased towards retail investors, since the large lower limit position sizings coerce smaller traders to accept positions which are hazardous for them due to their large size. Want of know how and modest sums of capital make private investment in FOREX a speculative enterprise for these traders. Most small scale traders would in all probabilty be ravaged in these risky types of dealings on account of their want of expertise and trading muscle once it comes to dealing in a speculative marketplace and are normally warned not to trade in this high-risk trading marketplace.
The 10 most active traders in international monetory exchange account for 73% of all FOREX contracts. These traders are the well established international banks that repeatedly make available to the marketplace quotations with both buy and sell prices, which establish the bid. These international FOREX quotes are also influenced by existing rates of interest, world trade, inflation and political issues.
On account of the over-the-counter or readily available ways of deal in monetory exchange, there is no individual value for each currencies worth. Instead the quoted prices hinge upon which banking company or market maker is trading. This has trended to make the markets more obscure for the minor trader. The heaviest traded currencies are the U.S. dollar, Euro, Japanese Yen, British pound sterling, Swiss franc, Australian dollar and Canadian dollar. Prior to this prevailing “horse trading” system the former trading arrangement was the gold standard. The gold standard is a medium of exchange in which the standard economic unit of account is a fixed weight of gold. Gold was utilized on account of its rarity, enduringness, and the universal ease of recognition due to its unique coloration, mass, ductility and acoustic properties. Gold is an internationally accepted commodity, which is the reason why holdings of gold are still retained by the governments of most countries worldwide. When international governments traded using the gold standard, the United States treasury would print paper currency that equaled a specific value of existing physical gold. Meaning, you could cash in your paper money for a designated value of gold since a unit of currency equates to a specific measure of gold.
Gold is not currently used as monetory exchange in any nation, but some individual establishments are still utilising it. Many claim that we will never be able to return to the past tried and proven system of employing the gold standard because it would cause a decrease in the money supply and the world economy would collapse. They say that there is just not enough gold to back all of the dollars out there given the size of our economy. These folk believe that if the world’s supply of money was limited by the world’s supply of gold, a major disadvantage would be the inherent lack of liquidity which in turn would cause the world economies to contract. Other folk believe that if we returned to a gold standard, the laws of supply and demand would apply, and that the price of gold would be valued according to the amount of paper money in circulation at any given time, and that at least, Governments would no longer be able to print money as they pleased..
ZAR per oz. Spot Gold Chart
USD per oz. Comparison Chart
ZAR per oz. 24 Hour Gold Chart
USD per oz. Comparison Chart
ZAR per Kilogram Spot Gold Chart
USD per Kilogram Comparison Chart
ZAR per Kilogram 24 Hour Gold Chart
USD per Kilogram Comparison Chart
Central Rand Gold News
We think share price momentum will resume later in the year, and Central Rand remains one of our top gold picks for 2009. We expect positive momentum to resume once the reserve statements are released in March 2009, along with more detailed mine schedules, which should de-risk operations. Read more… Assets That Will Make All-Time Highs in 2009
Gold miners process tons of rock for only a fraction of an ounce of gold. It’s complex, costly, and risky. The gold price is also volatile and will have you browning your undies if you’re not prepared for it. Read more…South African Gold miners reaping in rich harvest
The good news for producers was the rand’s depreciation by an average 28 per cent to 9.94 rand to the dollar during October to December. This sent the rand gold price up by 17 per cent to a record high of 254,000 rand per kg. Read more…
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