Global vs. Local Gold Markets: What Australian Investors Should Know

Gold has been considered one of the surest stores of value in the world, especially during uncertain times. The demand for investing in precious metals by Australian investors has been increasing, as many consider the benefits of both international and domestic opportunities. It is imperative to understand the differences between these two markets as informed decisions can assist the investor to maximize returns, diversify the portfolio and protect wealth more successfully. Understanding the Global Gold Market Major markets, such as the London Bullion Market Association (LBMA) and COMEX, are the primary markets that determine the international gold price. The benchmarks determine the international spot price that forms the basis of exchanges throughout the world. Global gold markets are affected by a number of factors, such as central bank policies, inflation, political instabilities, and currency variations. Such forces are usually responsible for causing short-run volatility, but the...