Primary Factors That Affect the Price of Gold and Silver Bullion

The price of gold, as well as the price of silver, is affected by a various factors in the global economy. Precious metals have always been considered solid investment options as they have traditionally yielded good returns. The prices of gold and silver have fluctuated repeatedly over the past decade. Both still are solid investments and when you are in the market, you can purchase from New Zealand’s leading independent dealer, Bullion Deals. Our company is well known for its amazing deals on gold and silver coins and bullion as well as our outstanding service and commitment to our customers. When considering a purchase, keep in mind these factors that influence the price of gold or silver.

The Economic Forces of Supply and Demand

The price of silver or gold is subject to the forces of supply and demand. There is a finite supply of gold and when it is in high demand, its price rises. Gold and silver have both been in high demand worldwide because of the uncertainty of many of the world’s economies. Both metals are desirable as an investment instrument and gold also has value because of its thermal conductivity and resistance to corrosion. It is very useful in a number of industrial applications. These persistent increases in demand tend to drive up the price of gold and silver. Likewise, decreases in demand result in lower prices.

The Price of Gold Bullion Is Affected by the World Economy

One of the biggest factors influencing the price of bullion and gold and silver coins is the state of the world economy. When the global economic outlook is bleak and most investments are providing low rates of return, gold and silver become more favourable as they are known to perform well in times of crisis. As a result, the demand for these metals rises and subsequently so does their price.

The Strength of the U.S. Dollar

Even in New Zealand, how well the United States dollar is performing when compared to other currencies will affect the price of gold and silver. When the dollar weakens, many investors begin buying gold as a security measure. A weak dollar leads to a higher demand for gold which ultimately leads to a rise in prices. When the U.S. dollar is strong, the demand for gold falls and its price falls.

Where to Buy Gold and Silver

In uncertain economic times, it makes sense to purchase precious metals. You can do so at Bullion Deals, New Zealand’s leading dealer of superior bullion products. Check on the price of silver bullion, silver bars, coins, and more on our website. You can place orders 24 hours a day, seven days a week and all of your transactions are completely secure.

When you buy from us, you can feel safe and secure knowing that you are receiving gold and silver products that are exactly the purity, standard, and price that you were quoted. We provide all of our customers with our 7-point guarantee which ensures that you the fastest, easiest live online ordering and free shipping on gold orders over 10 ounces and silver orders over 1000 ounces. Place your order today or for more information fill out the online contact form on our website. You can also speak to one of our experienced staff members by calling the appropriate number for your area. See the website for phone numbers.

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