When you start to think about investing in gold (AU), you might find yourself wandering into a mysterious culture. There are many precious metal terms, like “bullion,” “karats” and the “spot price,” which professionals understand. Today, you can gain some knowledge to help you with your asset purchase, by learning how the gold price is determined.
How the Gold Price Is Determined
In most nations, the gold under the earth, belongs to the government. Spain gained profound wealth when it discovered vast precious metals mines in South America. Before anyone can open a mine, they must pay numerous fees to the government owning the land.
Likewise, most precious metals prices have been primarily controlled by governments. England controlled the precious metal price using what was called the “London Fix.” The first fix occurred on 12 September 1919 with the top precious metal refiners of the city: Rothschild, Mocatta, Pixley, Montagu and Sharps. The goal was to ask the top banks what they were charging for the precious metal and average the price accordingly.
“FDR Confiscated Wealth”
On 5 April 1933, the American President Franklin D. Roosevelt (FDR) issued Executive Order 6102 – confiscating valuable AU golden coins from the citizens. The United States government had established a set price for AU of $20.67 per ounce. Eventually, the United States allowed for the price of precious metals to float freely.
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American President Richard Nixon ended the country’s selling of AU in a special window to other nations. Since then, the London Fix has gained even more control over the pricing of precious metals.
On 16 April 2016, China entered the precious metals price-setting regime with its Shanghai Precious Metals Exchange. The Bank of China has been added to the London Fix. Now the precious metals prices are set by the top banks in China, the United States and England.
“Control Wealth with Karatbars”
The “movers and shakers” of the world own precious metals to protect their wealth against the vagaries of life. I, Harald Seiz, sell AU Karatbars, allowing you to own an imperishable asset.
“Financial crises never end, they only impoverish the unprepared.”
Precious metals bars are a hedge against inflation. The Rothschilds and FDR turned to golden money, when they needed to raise funds quickly, why don’t you? Move your life in a positive direction with Karatbars. I am moved to help you by providing the answer to your wealth preservation questions.