Why is the value of gold rising the way it is and continues to rise?

Why is the value of gold rising the way it is and continues to rise?
by

1 Answer

Answer :

In a nutshell, when currencies become less stable – people turn to tangible things they can “trust.” People invest in gold (stock) because it has gone up consistently for many, many years and people buy actual gold because they think they can trust something they own and can feel in their hands. Historically, it has always been this way.
by

Related questions

Why does primary sector continues to be the largest employer in India? (a) Secondary and Tertiary sector are not able to generate comparatively enough employment opportunities despite increase in their production level. (b) It generates more employment opportunities. (c) It exploits natural resources and provides raw material to secondary sector.(d) None of the above

Description : Why does primary sector continues to be the largest employer in India? (a) Secondary and Tertiary sector are not able to generate comparatively enough employment opportunities despite increase in their ... exploits natural resources and provides raw material to secondary sector.(d) None of the above

Last Answer : (a) Secondary and Tertiary sector are not able to generate comparatively enough employment opportunities despite increase in their production level.

(a) accidents happen(b) accidents are on a rise (c) there are rising accidents (d) most accidents occur

Description : (a) accidents happen(b) accidents are on a rise (c) there are rising accidents (d) most accidents occur

Last Answer : (b) accidents are on a rise

In the question a part of the sentence is given in BOLD. Alternatives to the BOLD part are given which may improve the construction of the sentence. Select the correct alternative. Anand has the guts to rise from the occasion and come out successfully. (a) in rising from (b) to raise with (c) to rise to (d) to rise against

Description : In the question a part of the sentence is given in BOLD. Alternatives to the BOLD part are given which may improve the construction of the sentence. Select the correct alternative. Anand has the guts to rise from the ... . (a) in rising from (b) to raise with (c) to rise to (d) to rise against

Last Answer : (c) to rise to

Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Description : Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Last Answer : (4) inflation and rising unemployment Explanation: Stagflation describes a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high ... economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.

When the total product rises at an increasing rate, the - (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant

Description : When the total product rises at an increasing rate, the - (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant

Last Answer : (2) marginal product is rising Explanation: Marginal product of an input (factor of production) is the extra output that can be produced by using one more unit of the input (for instance ... from total product. The other is average product. Marginal product is directly proportional to total product.

A rising Per Capita Income will indicate a better welfare if it is accompanied by - (1) unchanged Income distribution overall. (2) changed Income distribution in favour of rich. (3) changed Income distribution in favour of poor. (4) changed Income disribution in favour of Industrial Labour.

Description : A rising Per Capita Income will indicate a better welfare if it is accompanied by - (1) unchanged Income distribution overall. (2) changed Income distribution in favour of rich. (3) changed Income distribution in favour of poor. (4) changed Income disribution in favour of Industrial Labour.

Last Answer : (3) changed Income distribution in favour of poor. Explanation: Per capita income has lately been viewed as a better determinant of economic development and welfare. However, high inequality can still ... no quarters deprived as after all, economic welfare is a part and parcel of social welfare.

A favorable Balance of Trade of a country implies that - (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Description : A favorable Balance of Trade of a country implies that - (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Last Answer : (2) Exports are greater than Imports Explanation: Favorable balance of trade is an imbalance in a nation's balance of trade in which the payments for merchandise exports received by the country exceed ... and income. A balance of trade surplus is often the source of a balance of payments surplus.

When average cost production (AC) falls, marginal cost of production must be - (1) rising (2) Falling (3) Greater than the average cost (4) Less than the average cost

Description : When average cost production (AC) falls, marginal cost of production must be - (1) rising (2) Falling (3) Greater than the average cost (4) Less than the average cost

Last Answer : (4) Less than the average cost Explanation: Average cost is the total cost per unit of output. Marginal cost, on the other hand, is the addition to the total cost by producing one more ... where marginal cost is higher than average cost, and average cost is an increasing function of output.

The demand curve for a Giffen good is (1) upward rising (2) downward falling (3) parallel to the quantity axis (4) parallel to the price axis

Description : The demand curve for a Giffen good is (1) upward rising (2) downward falling (3) parallel to the quantity axis (4) parallel to the price axis

Last Answer : (1) upward rising Explanation: A Giffen good is a good whose consumption in-creases as its price increases. (For a normal good, as the price increases, consumption decreases.) Thus, the ... a price changes the income effect outweighs the substitution effect and this leads to perverse demand curve.

A favourable Balance of Trade of a country implies that (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Description : A favourable Balance of Trade of a country implies that (1) Imports are greater than Exports (2) Exports are greater than Imports (3) Both Imports and Exports are equal (4) Rising Imports and Falling Exports

Last Answer :  Exports are greater than Imports

Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Description : Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Last Answer : inflation and rising unemployment

A rising Per Capita Income will indicate a better welfare if it is accompanied by (1) unchanged Income distribution overall. (2) changed Income distribution in favour of rich. (3) changed Income distribution in favour of poor. (4) changed Income disribution in favour of Industrial Labour.

Description : A rising Per Capita Income will indicate a better welfare if it is accompanied by (1) unchanged Income distribution overall. (2) changed Income distribution in favour of rich. (3) changed Income distribution in favour of poor. (4) changed Income disribution in favour of Industrial Labour. 

Last Answer : changed Income distribution in favour of poor. 

When average cost production (AC) falls, marginal cost of production must be. (1) rising (2) Falling (3) Greater than the average cost (4) Less than the average cost

Description : When average cost production (AC) falls, marginal cost of production must be. (1) rising (2) Falling (3) Greater than the average cost (4) Less than the average cost

Last Answer : Less than the average cost

When the total product rises at an increasing rate, the (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant

Description : When the total product rises at an increasing rate, the (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant

Last Answer : marginal product is rising

The demand curve for a Giffen good is (1) upward rising (2) downward falling (3) parallel to the quantity axis (4) parallel to the price axis

Description : The demand curve for a Giffen good is (1) upward rising (2) downward falling (3) parallel to the quantity axis (4) parallel to the price axis 

Last Answer : upward rising

A sheriff is in hot pursuit of the notorious bank robber Black Bart. The six-shooters of the lawman and the criminal glisten in the sun, as Black Bart speeds his way on foot to the first horse he sees, and quickly mounts it. The sheriff, in hot pursuit, jumps on the back of the closest steed he can find, and continues the heated chase, but he is unable to close the gap between them. After a short time, a man and a woman, who are witnessing the chase, shout out loudly to the lawman and the criminal, 'Meet you at the saloon in 30 minutes for something cold!' What is going on in this strange scenario, and who are the man and the woman who shouted out the invitation to the saloon? -Riddles

Description : A sheriff is in hot pursuit of the notorious bank robber Black Bart. The six-shooters of the lawman and the criminal glisten in the sun, as Black Bart speeds his way on foot to the first horse he ... scenario, and who are the man and the woman who shouted out the invitation to the saloon? -Riddles

Last Answer : The 'sheriff' and 'Black Bart' are two children pretending to be a lawman chasing an outlaw, and are riding horses on a merry-go-round at an amusement park or a western tourist town. The man and the woman are their parents who are inviting them to the 'saloon' for some cold drinks or ice cream.

Complete the sentence by choosing one of the given biological terms. If an ulcer continues and eventually erodes all the way through the wall of the stomach or duodenum, the condition is called what? a) periodontitis b) perforation c) periotonitis d) none of these

Description : Complete the sentence by choosing one of the given biological terms. If an ulcer continues and eventually erodes all the way through the wall of the stomach or duodenum, the condition is called what? a) periodontitis b) perforation c) periotonitis d) none of these

Last Answer : ANSWER: B -- PERFORATION

In case of rising prices (inflation), LIFO will: (a) provide lowest value of closing stock and profit (b) provide highest value of closing stock and profit (c) provide highest value of closing stock but lowest value of profit (d) provide highest value of profit but lowest value of closing stock

Description : In case of rising prices (inflation), LIFO will: (a) provide lowest value of closing stock and profit (b) provide highest value of closing stock and profit (c) provide highest value ... but lowest value of profit (d) provide highest value of profit but lowest value of closing stock

Last Answer : (a) provide lowest value of closing stock and profit

In case of rising prices (inflation), FIFO method will: (a) provide lowest value of closing stock and profit (b) provide highest value of closing stock and profit (c) provide highest value of closing stock but lowest value of profit (d) provide highest value of profit but lowest value of closing stock

Description : In case of rising prices (inflation), FIFO method will: (a) provide lowest value of closing stock and profit (b) provide highest value of closing stock and profit (c) provide highest value ... stock but lowest value of profit (d) provide highest value of profit but lowest value of closing stock

Last Answer : (b) provide highest value of closing stock and profit

)A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.

Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product and employment (3) a rise in real gross National product and investment (4) a rise in prices of output and resources

Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.

Which of the following is a consequence of inflationary price rise? (1) Obstacle in development (2) Increase in economic inequalities (3) All of these (4) Adverse effect on the balance of payment

Description : Which of the following is a consequence of inflationary price rise? (1) Obstacle in development (2) Increase in economic inequalities (3) All of these (4) Adverse effect on the balance of payment

Last Answer : (3) All of these Explanation: Inflationary price rise is harmful to a country's economic performance and to the welfare of its citizens. It can create a random redistribution of income given that ... development as it has an adverse effect on saving and investment and causes a fall in growth.

Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Description : Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Last Answer : (3) remain unchanged Explanation: Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue ... effects on a country's international trade by alluring traders. But, internal prices remain unaffected.

Other things being equal, a decrease in quantity demanded of a commodity can be caused by – (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by – (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Last Answer : (1) a rise in the price of the commodity Explanation: In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases.

For an inferior good, demand falls when - (1) price rises (2) income rise (3) price falls (4) income falls

Description : For an inferior good, demand falls when - (1) price rises (2) income rise (3) price falls (4) income falls

Last Answer : (2) income rise Explanation: In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good. ... opposite is observed. Normal goods are those for which consumers' demand increases when their income increases.

When aggregate supply exceeds aggregate demand - (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Description : When aggregate supply exceeds aggregate demand - (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Last Answer : (3) inventories accumulate Explanation: Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in. This will lead to a buildup in stocks (inventories) and this sends a signal to ... Either way -there is a tendency for output to move closer to the current level of demand.

The equilibrium price of a commodity will definitely rise if there is a/an: (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Description : The equilibrium price of a commodity will definitely rise if there is a/an: (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Last Answer : (4) increase in demand accompanied by a decrease in supply. Explanation: Price of a commodity is always determined by the forces of demand and supply in the market. The price at which ... equilibrium price definitely increases when there is an increase in demand combined with the decrease in supply.

A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Description : A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Last Answer : (2) decreases the price of that commodity Explanation: The four basic laws of supply and demand are: (1) If demand increases and supply remains unchanged, a shortage occurs, leading to a higher ... (4) If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher price.

The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat

Description : The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat

Last Answer : (3) Salt Explanation: For certain goods called necessities, demand is not related to income. Demand for salt does not increase with the increase in income & does not decrease with the decrease in ... irrespective of income. The demand curve slopes downward for goods like salt, but it is inelastic.

Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Description : Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Last Answer : (1) Reduction of consumption consequent to a rise in prices Explanation: Forced saving is an economic situation in which consumers spend less than their disposable income, not because they want to ... free economy, this situation would normally result in increase in prices and inflow of more goods.

Massive starvation takes place due to: (a) rise in the price of essential commodities (b) decline in production of foodgrains(c) drought (d) both (a) and (b)

Description : Massive starvation takes place due to: (a) rise in the price of essential commodities (b) decline in production of foodgrains (c) drought (d) both (a) and (b)

Last Answer : (c) drought

Pradhan Mantri Fasal Bima Yojana (PMFBY) was designed by central government to provide a. To rise food price b. To reduce the impact of food price c. Provide loan to farmers d. Price Stabilization

Description : Pradhan Mantri Fasal Bima Yojana (PMFBY) was designed by central government to provide a. To rise food price b. To reduce the impact of food price c. Provide loan to farmers d. Price Stabilization

Last Answer : a. To rise food price b. To reduce the impact of food price c. Provide loan to farmers d. Price Stabilization

“Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

10. “Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

8. If the government lowers taxes by $10 billion, the Real GDP will rise by a. more than $10 billion b. less than $10 billion c. exactly $10 billion

Description : 8. If the government lowers taxes by $10 billion, the Real GDP will rise by a. more than $10 billion b. less than $10 billion c. exactly $10 billion

Last Answer : a. more than $10 billion

10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged

Description : 10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged

Last Answer : b. fall

According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or fall in demand c) at a certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above

Description : According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or ... certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above

Last Answer : c) at a certain price, equilibrium output will be solely determined by the aggregate demand

Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above

Description : Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above

Last Answer : a) Price rise

In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.

Description : In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.

Last Answer : increases

Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Description : Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Last Answer :  remain unchanged

Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Description : Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Last Answer :  Reduction of consumption consequent to a rise in prices

A Black Market is a situation wherein (1) Goods are loaded by the producers (2) Goods are sold secretly (3) Goods are sold at prices higher than what is fixed by the Government (4) Goods are made available (sold) only after there is a rise in prices

Description : A Black Market is a situation wherein (1) Goods are loaded by the producers (2) Goods are sold secretly (3) Goods are sold at prices higher than what is fixed by the Government (4) Goods are made available (sold) only after there is a rise in prices

Last Answer : Goods are sold secretly

Which of the following taxes is such which does not cause rise in price ? (1) Import duty (2) Income tax (3) Octoroi (4) Sales tax

Description : Which of the following taxes is such which does not cause rise in price ? (1) Import duty (2) Income tax (3) Octoroi (4) Sales tax 

Last Answer :  Income tax

Which of the following is a consequence of inflationary price rise ? (1) Obstacle in development (2) Increase in economic inequalities (3) All of these (4) Adverse effect on the balance of payment

Description : Which of the following is a consequence of inflationary price rise ? (1) Obstacle in development (2) Increase in economic inequalities (3) All of these (4) Adverse effect on the balance of payment

Last Answer : All of these

The equilibrium price of a commodity will definitely rise if there is a/an : (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Description : The equilibrium price of a commodity will definitely rise if there is a/an : (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Last Answer : increase in demand accompanied by a decrease in supply.

A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy 

Last Answer :  the high rate of inflation prevailing in the economy

When aggregate supply exceeds aggregate demand (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Description : When aggregate supply exceeds aggregate demand (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops

Last Answer : inventories accumulate

According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and employment (3) a rise in real gross National product and investment (4) a rise in prices of output and resources

Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources

Last Answer :  a fall in prices of output and resources

Other things being equal, a decrease in quantity demanded of a commodity can be caused by (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer

Last Answer : a rise in the price of the commodity

For an inferior good, demand falls when (1) price rises (2) income rise (3) price falls (4) income falls

Description : For an inferior good, demand falls when (1) price rises (2) income rise (3) price falls (4) income falls

Last Answer : income rise