Today Gold Rate in India

Today Gold Rate in India


10 Grams 24 Carats Gold Price


Today Gold Rate

Gold is one of the important and natural sources available on the planet. In order to understand how the gold market determines the price of gold or Today Gold Rate, we have to first dismiss the principle of supply and demand . The supply and demand forces are the factors that define Today Gold Rate, they do not factor all that much over the long term.

In the early 2000’s, the top two gold miners production cost was closer to the price in the market. However, after the US Housing and Banking Market collapsed in the year 2008, the gold market price moved up considerably higher than the cost of production. Today Gold Rate An analysis suggests that the Gold Rate Today was starting to hear towards its high-quality store of value properties rather than the commodity pricing mechanism.

Today 22 Carat Gold Price Per Gram

Gold Price Last week

Today Gold Rate

Like I have mentioned the involvement of Federal and Central Banks can be intervening in the market to control How High the gold price will go and Today Gold Rate. That is the major difference here among today’s gold rates. So, those who continue to believe Harry Dent’s forecast that gold rate today will go down to $700 an ounce, are not considering the Cost of the production. Harry Dent spends a lot of money advertising to get people to buy his books or newsletters. Touting a $700 gold rate today  gets people motivated in buying what he sells.

Unfortunately, Dent, like most of the analysts, tends to leave out the energy in their forecasts. This is truly hilarious as energy is the leading drive of our economies, but not on the supply-demand or the finance.

The production Cost of Gold Is Higher When We Consider Capital Expenditures

Today Gold Rate

The net income and the adjusted income approach to determine the production cost of gold provides a much more realistic metric than the industry’s cash costs or all in sustaining costs. But when a mining company releases its income statements, they do not include their capital expenditures. Their net income doesn’t include the capital expenditures. To find out what they have paid in CAPEX, we must look at the Cash Flow Statements.

If we consider what Barrick and Newmont spent on the CAPEX and then deducted it from their cash from operations we would arrive at their Free Cash Flow Today Gold Rate.

Starting from 2000 to 2016, till last year, these two top gold miners free cash flow was a net of $10 billion. If we are comparing their free cash flow of $10 billion to the total of $220 billion revenues Today Gold Rate, it only accounted for 4.5% of their revenues. Thus, Barrick and newmont’s free caash flow shows that it costs more to produce gold than it was shown in their Annual Income Statements. This means the gold miners are still enjoying free cash flow during this time.

The gold market price or Today Gold Rate was still higher than the Barrick and Newmont’s small free cash flow margin to total revenue of today’s gold reates. If we include a stock dilution as well as the dividend payouts, these two gold miners would have an even higher production cost. But, that would still not change the overall production Gold Rate Today all that much

Like I have mentioned in the article, the Fed and the Central Banks can’t push the gold price whatever they see fit. The algorithms are electronically calculating the gold market price based on its cost of production. The only way the major Banks can control the Today Gold Rate is on its way UP. This can be done by using a massive amount of paper contracts to carp the gold price from moving up too high.