These days, gold is not only the most sought after for the jewelry market for investment purposes, but also used for the production of certain medical devices and electronic devices. There are many factors that cause the rates of this precious metal to fluctuate.
Central bank reserves
The central bank holds paper currencies as well as gold in its reserves. The World Gold Council also said that all central banks have recently begun to buy more gold than they sell. As all central banks diversified their monetary reserves, the prices of gold, which had accumulated and turned into gold, continued to rise.
The value of the US dollar
The price of gold is based on the value of the US dollar. This means that a strong US dollar means that the price of gold will be more controlled and kept at a lower rate. At the same time, a weak US dollar can lead to a much higher price of gold. This is mainly due to the fact that most people tend to trade in dollars and at the same time invest when the dollar is strong.
The demand for jewelry in the world
In a 2010 study, jewelry accounted for about 54% of gold demand, which was around 3,812 tons. The United States, China and India are the largest consumers of gold by volume. Consumer demand in China has reached 200 tons, a significant increase over last year. Also, the price of gold can be influenced by the basic theory of supply and demand, because as the demand for consumer goods such as electronics and jewelry increases, the value of God can increase significantly.
In times of economic uncertainty, as in times of recession, more people began to invest in gold because of its lasting value. Gold is also often considered a safe haven for investors in uncertain periods. In addition, when there are actual and expected returns on bonds, real estate and stocks, interest in gold investment increases significantly, leading to higher prices.
The recent recession has created a golden age in modern times. A TV show on this topic also attracted about 4 million viewers. It is one of the most important things to keep in mind.