Things To Think About Before You Buy Gold San Francisco

By Eleanor Thompson


The words buy gold San Francisco are as synonymous with each other as tea and Boston or oil and Dallas. Forty-niners with more money than sense would flock to the Barbary Coast, San Francisco's Red Light District, during the California Gold Rush of 1948-1855 to swap their precious nuggets for wine, women and gambling. The Golden Gate, the strait of water leading into San Francisco Bay, was named not for the rush that got the 49ers so excited, but to commemorate the Golden Horn at the entrance to the Bosphorus.

People buy coins or bullion as an investment when the value of the US Dollar on the currency market down. Governments can print more money, but they cannot create more of the precious ore. As a rule of thumb, there is an inverse relationship between the price of precious metals and the value of the US Dollar.

If the value of the Dollar goes down, the price of precious metals goes up. If the Dollar increases in value, then the price of the precious metals may go down. There are, however, other factors that determine the prices of precious metals.

For example, the true demand may go up or down. Its overall value is measured against a so-called 'basket' of currencies. These include the Euro, UK Pound, Japanese Yen, Swedish Krona, Swiss franc and the US Dollar. If the price for a given commodity is higher in all currencies, the implication is that the ore has increased in value.

However, if price is higher in US Dollars than it is in other currencies, this indicates that not only has the US Dollar weakened, but that the golden ore, too, has lost value in the other currencies. Because the price is quoted in US Dollars, it may appear that the value is higher than it really is.

The information included herein should not under any circumstances be construed as advice. Always consult a financial advisor before making significant changes to an investment portfolio.




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