Our Reference Library
Trading currencies and precious metals can be complicated. Most currencies aren’t directly tied to precious metals anymore, like they were during the “gold standard” of the United States. In fact, most of the world’s currencies are “fiat currencies” which means that their value isn’t derived from any fixed commodity like precious metals, but is instead set through regulation. However, currencies and precious metals do share some strong relations. For example, investors generally behave as if precious metals are stable alternatives to unstable currencies. The recent world economic turmoil and the rising price of gold & silver are testament to that.
The talking heads always say to buy low and sell high, but with phenomenon like hyperinflation: what exactly is low? Similarly, if the price of precious metals has always followed a general increasing trend: what is the best time to get into that market?
There is no single good answer for either of these questions. Both of these items depend on local, global, and other complex economic systems. In order to understand and forecast the value of a particular currency, an individual must have a grasp on how these systems might influence the values of currency. Reading financial news and ticker tape is an essential part of investing, but being able to abstract ideas in order to zoom out and see the larger picture is a much more valuable tool in currency markets.
We’ve designed this reference library to help individuals gain a better understanding of how economic systems work on a global scale to influence localized currencies and commodities. If you have any questions, please feel free to Contact Us. Treasury Vault would love to assist you with any questions or concerns that you may have about currencies and precious metals.