The Gold Market and the Value of the U.S. Dollar

The Gold Market and the Value of the U.S. Dollar

The aim of this research is to determine to what extent the price of gold is suppressed, thereby revealing an internal structural problem within the global monetary system. Historical manipulation could only have been done by controlling the value of money under a fractional reserve gold standard th...

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Main Authors: Abdullah, Adam, Abu Bakar, Mohd Jaffri
Format: Article
Language:English
Published: Canadian Center of Science and Education 2015
Subjects:
HG Finance
Online Access:http://irep.iium.edu.my/44677/
http://irep.iium.edu.my/44677/
http://irep.iium.edu.my/44677/
http://irep.iium.edu.my/44677/1/Abdullah%2C_15-05%2C_Gold_Market.pdf
id iium-44677
recordtype eprints
spelling iium-446772016-05-22T19:15:35Z http://irep.iium.edu.my/44677/ The Gold Market and the Value of the U.S. Dollar Abdullah, Adam Abu Bakar, Mohd Jaffri HG Finance The aim of this research is to determine to what extent the price of gold is suppressed, thereby revealing an internal structural problem within the global monetary system. Historical manipulation could only have been done by controlling the value of money under a fractional reserve gold standard through the physical demand for, and supply of gold, in relation to official reserves held at a central bank. More recently, the price of gold is largely influenced through paper trades, as a function of the operation of the gold market involving gold derivatives, in conjunction with physical trades and changes in official reserves. This research adopts a qualitative interpretation and numerical analysis to analyze the extent of market concentration and price manipulation. Our findings reveal that the gold market is largely deterministic rather than stochastic in nature. It also reveals that markets are not only subject to a fractional reserve banking system, but also a fractional reserve gold market, highlighting systemic instability inherent within the modern monetary system, and especially the value of the U.S. dollar and related dollar denominated assets. Canadian Center of Science and Education 2015-02-25 Article PeerReviewed application/pdf en http://irep.iium.edu.my/44677/1/Abdullah%2C_15-05%2C_Gold_Market.pdf Abdullah, Adam and Abu Bakar, Mohd Jaffri (2015) The Gold Market and the Value of the U.S. Dollar. International Business Research, 8 (3). pp. 190-207. ISSN 1913-9004 http://www.ccsenet.org/journal/index.php/ibr/article/view/44902/24855 10.5539/ibr.v8n3p190
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG Finance
spellingShingle HG Finance
Abdullah, Adam
Abu Bakar, Mohd Jaffri
The Gold Market and the Value of the U.S. Dollar
description The aim of this research is to determine to what extent the price of gold is suppressed, thereby revealing an internal structural problem within the global monetary system. Historical manipulation could only have been done by controlling the value of money under a fractional reserve gold standard through the physical demand for, and supply of gold, in relation to official reserves held at a central bank. More recently, the price of gold is largely influenced through paper trades, as a function of the operation of the gold market involving gold derivatives, in conjunction with physical trades and changes in official reserves. This research adopts a qualitative interpretation and numerical analysis to analyze the extent of market concentration and price manipulation. Our findings reveal that the gold market is largely deterministic rather than stochastic in nature. It also reveals that markets are not only subject to a fractional reserve banking system, but also a fractional reserve gold market, highlighting systemic instability inherent within the modern monetary system, and especially the value of the U.S. dollar and related dollar denominated assets.
format Article
author Abdullah, Adam
Abu Bakar, Mohd Jaffri
author_facet Abdullah, Adam
Abu Bakar, Mohd Jaffri
author_sort Abdullah, Adam
title The Gold Market and the Value of the U.S. Dollar
title_short The Gold Market and the Value of the U.S. Dollar
title_full The Gold Market and the Value of the U.S. Dollar
title_fullStr The Gold Market and the Value of the U.S. Dollar
title_full_unstemmed The Gold Market and the Value of the U.S. Dollar
title_sort gold market and the value of the u.s. dollar
publisher Canadian Center of Science and Education
publishDate 2015
url http://irep.iium.edu.my/44677/
http://irep.iium.edu.my/44677/
http://irep.iium.edu.my/44677/
http://irep.iium.edu.my/44677/1/Abdullah%2C_15-05%2C_Gold_Market.pdf
first_indexed 2023-09-18T21:03:30Z
last_indexed 2023-09-18T21:03:30Z
_version_ 1777410779931213824

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