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Forex is the world currency market where is made the currency exchange of the different countries on a certain rate, course changes occur constantly depending on market conditions.

Thereupon after the Second World War in the USA have been concentrated 75 % of gold reserves of the world, after what the USA have appeared a monopolist of the gold market and the US dollar was used as the reserve currency. It was accepted the decision on use of the American dollar as a starting point for definition of exchange of other countries. Occurrence of Bretton Woods’s system obliged to create the organization under the control of exchange rates – the International Monetary Fund. In case of occurrence of an external payments deficit, the fund credited the countries-participants.

Almost all world prices began to be established in US dollars. According to the country agreement could convert dollars being in their order on gold on a fixed rate. Besides was accepted the decision on realization, in case of need, interventions for prevention of a rate fluctuation of national currencies in limits, bigger than 1 % from the established nominal value of the national currency.

In 50 – 60th years the balance of payments of the USA had deficiency, during conversion conducted by the countries, stocks of gold of the USA were exhausted, and the quantity of dollars outside of the country increased.

After long pressure upon the balance of the USA payments and an increasing demand upon gold, which satisfied the USA, according to arrangements. The US president, Nixon, cancels a gold standard and established a binding of dollar to other currencies with a corridor of change 2. 25 %.

It was not possible to save Bretton Woods system, expansion of a currency corridor to 4 could not stop inconsistent fundamental factors. 5 %. After that has begun transition to float of exchange. In February 1973 the national currency floating rate declared Japan, and in March European union made it. Rates of exchange became float and were regulated by central banks the period of “dirty floating rates”. The new system of regulation of rates was created officially in 1976 on Jamaica in small town Kingston. This moment it is considered to be the moment of occurrence of the Forex market.

Fast growth of telecommunication sector in 90th years has allowed receiving market access to traders and individual investors, and constant alteration in rates has created a basis for gamble and profit extraction. Access to the market ensures the broker companies and dealing centers. After 90th years on the Internet was located the significant amount of the information from the companies offering access to the Forex market and confidential management in the market. The currency market stops the work only for the weekend, as has no any concrete place in which bargains with currency are carried out. The market follows on time zones from Japan to the USA where in 8: 00 traders of the financial centers worldwide meet it.

Before you make up your mind to make a forex investment or start forex trading yourself, better find a good forex book and read more about the currency exchange market – this will save you from tons of troubles and traps.

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Gold is the strongest asset isn’t it?
Don’t you mind my informing you that over the past five years the average annual return on investments in gold has approached to 148% per annum? This is an absolute record for financial instruments. For the past six months, the price of precious metal has risen almost by half. Naturally under the evident conditions of financial instability, when the future of the US dollar remains unclear and banks sometimes refuse of returning deposits, more and more people in the world think about investing their savings into gold. Will the yellow metal become more expensive in the nearer future? Does it threaten to a real collapse in prices? I believe that you also doubt somewhat about this.

Some guys are used to pointing out to a worsening economic situation in the USA. That’s why they tell that they need to find an alternative asset to all kinds of paper money, being printed without proper security. Just put it simply. I hope you know that the longer the United States run the printing press, the cheaper the US dollar. And the price of two thousand dollars
per troy ounce is not far off. You know for sure that America since 1959 has increased the money supply by 50 times, while gold reserves have increased only 27 times.

Some people believe that virtual gold or non-cash monetary system, pegged to the ounce, may be regarded as the only one real alternative to the dollar as the new global currency. Governments have the right to print money and their regulations are always manipulated. Falling confidence in the dollar makes the probability of occurrence of gold equivalent, or “digital gold”, this always can be exchanged for real gold. Though the idea to replace the dollar with gold captivates can’t be considered to be a new one. Conditionally, everyone knows that the yellow metal out of competition, because unlike paper money gold can not be printed. Even now, using all the technological innovations that gold production can not grow faster than 6% per year. It is a sort of ideal money isn’t it? The value of gold can not be affected even by the IMF, with its huge reserves. The fact is that in the case of “sale”, this precious metal doesn’t enter the market at all. In addition, the IMF can not conduct the transaction, if there is the slightest threat to reduce the market price of gold.

After that recent letting one bullion dollars go on lending to developing countries affected by the crisis the general amount of paper money has increased once again. And their cost has obviously decreased. And as soon as doubts about the stability of the dollar are confirmed, the gold will be among the first to show mad growth. And you can benefit from this.

At this moment precious metals’ attractiveness is on the upwards trend. People who want to get cash for gold are creating a unique opportunity on the market.

In case you are one of those who plan to rise up some cash for gold, then please make sure that you know the typical traps of the cash for gold.

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