How does the price of gold change?

Is gold traded on the stock market? Or does the price change simply by supply and demand (how is the supply and demand determined when there are so many companies that own and sell gold)?

Public Comments

1. its supply and demand.
2. Stock market !!
3. Gold does not trade on the stock market. Stocks trade on the stock market. Gold trades on commodities markets. In the US, that market is in New York City, and is called the Commodities Exchange, or COMEX for short. The COMEX is owned by the NYMEX, which is the New York Mercantile Exchange. They are best know as the place to trade crude oil, which is quite a hot topic nowadays. Other commodity exchanges throughout the world also trade gold.
4. Like any other asset class, gold trades in an exchange. In this case, it is the commodities exchange. Similar to stocks and bonds, the demand and supply of gold meets at an equilibrium price. Then this becomes the running market price of gold. The demand depends on several factors such as inflation, war, security, etc. The supply depends on how much people are willing to sell their gold at a certain price. If I were so desperate to liquidate my gold, then I will sell it now.
5. Yes gold is traded on the stock market by several ways. YOu can buy shares in a company involved in the god mineral business. You can trade options in gold(same as online gambling) this where you buy options(1) it's a bet that gold will rise. (2) you bet that gold will go down. These are called call and putts. Unless yo are a pro stay away from this as it is nearly a guranteed loss for everyone except the brokers. Gold does fluatuate and the price is determined by as you said supply and demand. A new kid has arrived on the block in all mineral investments now. People like cesar cheves of venusuala, Bolivia's President Morales, (and others are interested) have began to nationalize the mineral industry(includeing oil) and force american and european companies out. This could raise the price of gold to the extreme or it could backfire and force individuals, companies, and countries to find another safe heaven reather than gold. And the safest heaven on earth are american dollars. If countries with large gold deposits such as Canada, and Africa seized all foreign gold companies you can bet science and business wil work together to find a replacement and the ocean is full of gold. All these hypopsis theories and actual events could change the way gold and silver are traded. If gold got scarce enough every country in the industrial world would close their gold vaults and the poorer country would hbe sellingb theirs. people like Bolivia's President Morales, and Cesar Cheves of venusuala could cause strift in all mineral industries, while creating more trouble for their own poor with their dream of a communist paradise which has failed miserably in every country which tried it. The feds also are a big factor in the price of gold. and last the biggest contributor to gold or any options marker are the brokers and stock market analysis who actuallly control the market for their benefit.