5 factors behind the major rise in gold prices globally
5 factors behind the major rise in gold prices globally
5 factors behind the major rise in gold prices globally
Likely a number of experts the possibility of continuing high prices of gold, and registered further gains in 2011, to be accompanied by some volatility.
The experts identified 5 factors the quality of allowing the continued brilliance of gold, the most important, according to the "Al plc Financial" Consulting Services, a weaker dollar and rising inflation in the United States, in which action the Fed to stimulate the economy to the weak dollar, it is known that when the low dollar, the price of Gold rises. It is noticeable that despite the rise in gold to the highest level ever in dollar terms during the summer and autumn of 2010, but remained stable during the same period in terms of its value in euros or Japanese yen, but for its price in Australian dollars, has reached gold peaked in February 2009, down about 10% since then.
The second factor to the high gold is strong demand in emerging markets, this metal is a means of saving and the pride of the middle class emerging in China and India both, the two countries, who are now leading the growth of global demand for gold.
The abbreviated third factor transformation of central banks from vendors to buyers of gold, during the past decades have resorted central banks to sell gold reserves after the disengagement of their currencies by, but in recent times, proceeded countries such as Mexico, Russia and Thailand to strengthen its reserves of gold, and given to the environment current economic, central banks may continue to accumulate gold and currency with the increasing fears of inflation in the long term, and with the falling dollar has decided many of the emerging countries to reduce their reserves of U.S. currency and increase their exposure to gold.
According to the newspaper "The Wall Street Journal" America, the fourth factor behind the brilliance of gold, that the investors of the assets they regard as protectionist, usually when you resort to withdraw from high-risk investments to buy gold.
Experts believe that the fifth factor is to restrict exports of gold, the gulf between supply and demand continues to provide a background wind to push gold prices towards the top .. After the growth rate of 4% per year since 1980, slowed the growth of world production of gold to a great extent since 2001, with an average decline of 1% per year over the past ten years.
To meet the gradual rise in demand, there was a need for a steady increase in supply, but production of the yellow metal does not cover the demand. The cost of extracting gold escalate dramatically with increased risk of drilling to get to the mines, mostly located in remote areas .. And confirms many of the major producers to follow-up excavation and achieve superior returns is to calculate the costs according to the equation of thousand dollars an ounce.
Experts estimate the value of world production of gold over the past 110 years is not equivalent to only 3.9% of the total value of stocks, bonds and cash in all parts of the world, up from 1.3% in 2000. And the current ratio remains close to the rate recorded in 2000, amounting to 1.3%, but much lower than the 12.1% recorded in 1980, when the price of gold peaked.
5 factors behind the major rise in gold prices globally
Likely a number of experts the possibility of continuing high prices of gold, and registered further gains in 2011, to be accompanied by some volatility.
The experts identified 5 factors the quality of allowing the continued brilliance of gold, the most important, according to the "Al plc Financial" Consulting Services, a weaker dollar and rising inflation in the United States, in which action the Fed to stimulate the economy to the weak dollar, it is known that when the low dollar, the price of Gold rises. It is noticeable that despite the rise in gold to the highest level ever in dollar terms during the summer and autumn of 2010, but remained stable during the same period in terms of its value in euros or Japanese yen, but for its price in Australian dollars, has reached gold peaked in February 2009, down about 10% since then.
The second factor to the high gold is strong demand in emerging markets, this metal is a means of saving and the pride of the middle class emerging in China and India both, the two countries, who are now leading the growth of global demand for gold.
The abbreviated third factor transformation of central banks from vendors to buyers of gold, during the past decades have resorted central banks to sell gold reserves after the disengagement of their currencies by, but in recent times, proceeded countries such as Mexico, Russia and Thailand to strengthen its reserves of gold, and given to the environment current economic, central banks may continue to accumulate gold and currency with the increasing fears of inflation in the long term, and with the falling dollar has decided many of the emerging countries to reduce their reserves of U.S. currency and increase their exposure to gold.
According to the newspaper "The Wall Street Journal" America, the fourth factor behind the brilliance of gold, that the investors of the assets they regard as protectionist, usually when you resort to withdraw from high-risk investments to buy gold.
Experts believe that the fifth factor is to restrict exports of gold, the gulf between supply and demand continues to provide a background wind to push gold prices towards the top .. After the growth rate of 4% per year since 1980, slowed the growth of world production of gold to a great extent since 2001, with an average decline of 1% per year over the past ten years.
To meet the gradual rise in demand, there was a need for a steady increase in supply, but production of the yellow metal does not cover the demand. The cost of extracting gold escalate dramatically with increased risk of drilling to get to the mines, mostly located in remote areas .. And confirms many of the major producers to follow-up excavation and achieve superior returns is to calculate the costs according to the equation of thousand dollars an ounce.
Experts estimate the value of world production of gold over the past 110 years is not equivalent to only 3.9% of the total value of stocks, bonds and cash in all parts of the world, up from 1.3% in 2000. And the current ratio remains close to the rate recorded in 2000, amounting to 1.3%, but much lower than the 12.1% recorded in 1980, when the price of gold peaked.
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