When the US Dollar gets stronger, it takes fewer dollars to buy any commodity that is priced in $USD. When the US Dollar gets weaker it takes more dollars to purchase the same commodity.
The price of all US Dollar denominated commodities, like gold, will change to reflect the fact that it will take fewer or more dollars to buy that commodity. So it’s quite possible, in fact it’s almost always the case that a portion of the change in the price of gold is really just a reflection of a change in the value of the US Dollar. Sometimes that portion is insignificant. But often the opposite is true where the entire change in the gold price is simply a mathematical recalculation of an ever-changing US Dollar value.
When the dollar gets strong, gold appears to go down, and vice versa. That accounts for part of the fluctuations that we see in the value of gold.
The other part is an actual increase in the supply or demand for gold. If the price is higher when being measured not only in US Dollars, but also in Euros, Pounds Sterling, Japanese Yen, and every other major currency, then we know the gold demand is higher and it has actually increased in value.
Consequently, if gold is higher in US Dollars while at the same time cheaper in every other currency, then we can conclude that the US Dollar has weakened, and that gold has actually lost value in all other currencies. But the price, because it is being quoted in $USD will be higher and give the illusion of gold becoming more valuable. In such a case the devaluation of gold, due to increased supply on the market, is camouflaged by a weakened US Dollar.
Texas Gold and Silver Buyers GUARANTEES TOP DOLLAR PAID ON YOUR GOLD and SILVER ITEMS! We buy ALL Gold, Silver, Platinum and Palladium
We also buy Gold and Silver Jewelry scrap or not, Gold Coins, Silver Coins, Junk Silver, Sterling Flatware, Platters, and Serving Dishes (stamped Sterling), Bullion, Platinum and Palladium!
For a full list of what we buy please click the button below!
San Antonio, sell my gold, we buy gold, sell my silver, we buy silver, sell my coins, gold dealer, cash for gold, cash for silver, cash for coins, cash for watches, we buy diamonds, sell diamonds, Gold Buyers San Antonio, sell my jewelry, cash for jewelry, we buy platinum, sell my platinum, gold buyer, coin buyer, silver buyer, gold exchange, Gold Buyers, Where to Sell My Gold, San Antonio Gold Buyers, Sell my Jewelry, Jewelry Liquidation, Who Buys Gold, Sell My Silver, Sell my Flatware, Sell my Sterling, Who buys silver, Who Buys Sterling, Who Buys Jewelry, Sell Gold, Scrap Gold Buyers, Scrap Silver Buyers, Sell Silver, Sell Coins, San Antonio Silver Buyers, Diamond Buyers, Texas Gold and Silver Buyers
Thanks for stopping by our blog. My name is Evan and I am the owner of Texas Gold and Silver Buyers in San Antonio. From time to time I will post blog entries to help educate and inform our customers and potential future customers on all aspects of Precious Metals (Gold, Silver, Platinum & Palladium!)