Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a way of diversifying risk, especially through the use of futures contracts and derivatives. The gold market is subject to speculation and volatility as are other markets. Compared to other precious metals used for investment, gold has the most effective safe haven and hedging properties across a number of countries. Central banks and the International Monetary Fund play an important role in the gold price. China has the most demand for gold specially manufacturing sector. Specially jewelries and exchangers should be self-protection with Forex from the market risks. If real gold prices are depreciate jewelries and exchangers can protect their gold with forex sell transactions.
A lot of factors affected to gold prices in our country. Gram (local) gold prices are dependent international gold price (ounce) and USD/TRY parity.
We need to 1 ounces’ gram amount / value for a pure gold 24 carat price’s calculation.
1 ounce gold is 31.1034768 gram. If 1 ounce price is 1300 dollar ;
1300 / 31.1034768= 41.795 $ This amount is gram golds’ dollar price.
If exchange rate of dollar is 3 TRY;
41,7959 X 3.00 = 125,38 TRY is one gram golds’ price.