Does gold prices differ from countries?
Please give reasons.
- Anonymous1 decade agoFavourite answer
Well it shouldn't vary much. You would have the usual supply/demand difference and you might have a quality problem. Gold is an international currency and priced in US$.
If you buy hallmarked gold, say in UK form a reputable dealer then you can be pretty sure of the quality and gold content. In other places the same may not be true!
Otherwise if everything else is equal the price (in $ should be much the same). If not you could buy the cheap stuff and sell it in the dearer places.
- Anonymous1 decade ago
Yes, gold differ from country to country.
1. Basically, Gold is an inflation Hedge. If inflation of any country ( Mostly Look at developed economies) increases, investors buys gold to balance their port folio. So, Gold will move up.
Ex: Now every one says US economy is in Stagflation. You can see what Gold is trading at?
2. Crude prices directly affects the oil import bill of any country. Increase in Imports Bill will increase the Trade Defict ( Export - Imports) of countries (Mainly watch out US Trade Deficit Data). Higher Trade deficit would hit the value of currency of the country. This will affect the money circulation in the economy there by leading inflation ( Here applies the logic of " Too much money chasing too few goods). So, If Crude price rises, Gold will also move Up.
3. As you know most of the countries has got Foriegn Reserves. And these reserves are in form of Dollars. For example, India boasts about 140 Billion Dollars of reserves. If the dollar looses value, the entire basket looses value. So, countries will look for safe heaven i.e.GOLD. If Dollar looses value, Gold will mpove Up.Source(s): www.traderji.com
- duzanLv 43 years ago
the main substantial distinction would be brought about via foreign places funds conversion expenses. Gold is often priced initially in US money. In some worldwide places you're able to ought to go through larger earnings margins between procuring and promoting expenses.
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- SRINIVASAN RLv 51 decade ago
When we go to buy some thing in market and we find for the same type of commodity, different rates in different shops. What is this. Yes, each person claims for the difference quality and which is very difficult to measure.
- Truth or dare?Lv 61 decade ago
Yes because the taxes imposed on gold by different governments are different which has a great impact on its final cost.
- paiLv 51 decade ago
Certainly. The price depends , besides supply and demand on factors like transportation, season and various others. Buy some, best of luck.
- HandeLv 71 decade ago
It does not make big difference.
Small variations arise from time to time locally depending on festive seasons etc
- Anonymous1 decade ago
yes.Definitely.Gold price vary in different countriesSource(s): http://www.topreporter.org/