The Gold Market and Influences on It Essay

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The gold market can rightly be considered one of the most stable and ideal markets globally. There are many attributes that make it a flawless market. The most critical parameter is the demand for gold around the world. There are very few countries that are not interested in this material. Since most countries are interested in the commodity, its demand will always be high. Accordingly, the price of gold will be regulated by the gold supplier himself, which makes this market one of the most lucrative. This ability to trade the material without government control is called a “free market.”

Not many countries in the world can boast of their “free market” status. Although there are only five such countries at the moment, they are setting the trend for market development and are giants in terms of trading despite their modest size. What makes them so unique and cutting-edge? The answer is banality simple: free trade without restrictions and relatively low taxes on imports into their territory. This, as well as the advantageous geographical location, makes these countries leaders in international trade.

It has become fashionable to associate the concepts of ‘free market’ and ‘capitalism.’ Still, there are many distinguishing features that make it possible to say that these are different concepts, albeit very similar. Capitalism refers to the creation of wealth and the ownership of capital, production, and distribution. In contrast, the free market system is concerned with the exchange of wealth or goods and services. Likewise, capitalism involves total company ownership, while the free market is oriented towards a competitive environment with minimal government involvement. This is the most crucial difference, making it impossible to call these concepts the same.

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IvyPanda. 2023. "The Gold Market and Influences on It." May 19, 2023. https://ivypanda.com/essays/the-gold-market-and-influences-on-it/.

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IvyPanda. "The Gold Market and Influences on It." May 19, 2023. https://ivypanda.com/essays/the-gold-market-and-influences-on-it/.

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