The Bank of England has bought a number (molillion-billion, etc.) of pounds from the Swiss bank for francs. How will the exchange rate change, why? - page 5
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Let's look at it this way.
Is it true that gold has risen because :
1) The IMF sold gold
2) India bought gold.
Answer :)))
if you can, without a crisis.
>> we're talking about forex, not cars.
The essence is the same, we are buying currency or a car, there is practically no difference (in the bidding process), the seller offers us a price, we decide whether to buy or not, you can agree or not, you can underestimate the price of goods, say something like: "If the seller agrees, he drops the price, and you will have more money in your pocket. That is, you originally intended to take a Bechu for $ 100,000 (for example) ended up buying for $ 90,000. So at the end of the auction you have a Baja and another $10000, respectively, your fortune has increased (of course, if the value of the Baja is equal to $ 100,000).
Let's look at it this way.
Is it true that gold has risen because :
1) The IMF sold gold
2) India bought gold.
Answer :)))
if possible, without crisis.
Don't try to find a connection where there isn't one.
Synthesizing money will always be more affordable than synthesizing gold (if they ever learn to synthesize it).
Yes, but it is worth taking into account the fact that relatively little gold is mined. So as soon as large scale mining or synthesis becomes possible, the price of gold will drop dramatically. For example even now the price of gold is lower than in the 1980s when adjusted for inflation.
Long term investments in gold in my opinion are not justified.
"In '78 the Jamaica Agreement was reached. The gold standard was abandoned and a system of floating exchange rates was established. That is, the exchange rate is not pegged to a fixed figure and is determined on the basis of the balance of supply and demand for the currency on the international and domestic markets.
In a simplified form it looks like this - on the y-axis the price of the currency, on the x-axis the quantity.
The supply curve shows what quantity of currency and at what price the market can sell. The curve goes up, because the higher the price, the more people want to sell. The demand curve shows how much currency people are willing to buy at each price. The curve goes down, because more people want to buy at a lower price.
The two curves intersect at the equilibrium point of supply and demand, i.e. at an equilibrium price and quantity. At the price Qp, the demanded and the estimated quantity is the same (go sideways) At this point there is no shortage or oversupply, and therefore no pressure to change the price later.
If the price is higher than Qp, then everyone will try to sell more than they can buy. A surplus will accumulate and the price will decrease to sell this surplus. This reduction will continue until the equilibrium price is reached.
The opposite situation will occur if the price is below CDN. Scarcity will develop because at this price the bulls will not be able to buy as much as they would like. This will create upward pressure on the price, the bulls will try to outbid each other to buy the currency and the bears will try to sell higher. Eventually the price will reach the equilibrium level again.
All this makes sense if there is free competition in the market. If the supply is controlled by a monopolist then there will be no correspondence between the price and the quantity offered.
Foreign exchange operations can be divided into two groups:
1. Serving trade in goods
2. Speculative operations
The amount of money used in the operations of the first group is directly related to the amount of goods, i.e. has a link to the real economy.
The second group includes those or other operations for the purpose of profiting from the currency trade itself, i.e. not related to the trade in goods and services.
According to various estimates, by the beginning of this century there were up to 50 speculative dollars per dollar involved in commodity trading operations.
So, what's the price to calculate?
Japan Tm"
.
Yes, but it is worth taking into account the fact that relatively little gold is mined. So as soon as large scale mining or synthesis becomes possible, the price of gold will drop dramatically. For example even now the price of gold is lower than in the 1980s when adjusted for inflation.
Long term investments in gold in my opinion are not justified.
it's one thing to invest, i.e. to sell later, it's another to buy for ever. India seems to have been preparing for the holiday.
>> Don't try to find the connection where there is none.
So you can ignore the news.
Some sell, some buy, others buy... everyone sees the profit in their deal.
But the price changes depending on the fundamentals!
There's another inconsistency.
You drew a point I wanted to hit with my finger to show where the (golden) middle ground is between supply and demand
Oh, yeah.
Suum quique
According to the topstarter's info - pound up, franc down.
Gold down - oil up. yen down.
That's funny.
We'll see soon...
;)
So you can ignore the news.
Some sell, some buy, all see the profit in their deal.
But the price changes depending on the fundamentals.
another inconsistency.
I think you need to know the exchange rate and if it is lower than the exchange rate, you should buy and if it is higher, you should sell.