PRICE OF GOLD.
Since the return to the gold standard there have been small fluctuations in the price of tine gold in London. Many people wonder why the price of fine gold should fluctuate while that for standard gold is statutorily fixed. The explanation appears to lie in the fact that the fine gold 1s placed on the market for sale, like any other commodity, subject to laws of supply and demand. If the supply is excessive the price tends to fall. A statement in the bullion letter of Samuel Montagu and Co., London, dated Ist July, throws some light on the subject. In reference to the purchase—believed to be the first since the return to the gold standard—of a considerable amount of South African gold by the Bank of England, it is stated that "recent, offerings of gold upon the market have not been readily absorbed, the price of such gold being no* <Jd per' ounce under the Bunk of England selling rate." Before the resumption of tho gold standard in England the London price of fine gold—which, after all, is the value of the metal reckoned in terms of the currency pf the country—fluctuated somewhat violently in accordance with the movement of the value of the paper pound in relation to dollars, which remained on a gold basis throughout and after the w«».
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Bibliographic details
Evening Post, Volume CX, Issue 49, 26 August 1925, Page 7
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225PRICE OF GOLD. Evening Post, Volume CX, Issue 49, 26 August 1925, Page 7
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