Treasure Hunters Roadshow

The day price of gold is driven by supply and demand according to Treasure Hunters Roadshow Gold Experts. Because most of the gold ever mined still exists and is potentially able to come on to the market for the right price, unlike most other commodities, the hoarding and disposal plays a much bigger role in affecting the price. At the end of 2006, it was estimated that all the gold ever mined totaled 158,000 tons. Given the huge quantity of stored gold, compared to the annual production, the price of gold is mainly affected by changes in sentiment, rather than changes in annual production explains Treasure Hunters Roadshow. In times of national crisis, people fear that their assets may be seized and that the currency may become worthless. They see gold as a solid asset which will always buy food or transportation. Thus in times of great uncertainty, particularly when war is feared, the demand for gold rises according to Treasure Hunters Road Show.

When dollars were fully convertible into gold, both were regarded as money. However, most people preferred to carry around paper banknotes rather than the somewhat heavier and less divisible gold coins. If people feared their bank would fail, a bank run might have been the result. This is what happened in the USA during the Great Depression of the 1930s, leading President Roosevelt to impose a national emergency and to outlaw the ownership of gold by US citizens explains Treasurehunters Roadshow.

If the return on bonds, equities and real estate is not adequately compensating for risk and inflation then the demand for gold and other alternative investments such as commodities increases. An example of this is the period of Stagflation that occurred during the 1970s and which led to an economic bubble forming in precious metals.

According to Treasure Hunters Roadshow Professionals, gold is the most popular precious metal in which people invest. It is a safe- haven agaainst any economic, political, social or currency-based crises, such as: investment market declines, currency failure, inflation, war and social unrest.