The most sweeping price hike in 7 years!
The demand for gold grows, and the prices grow along. What record has been set in the last 7 years? What and how impacts the demand for gold? And will prices keep growing in future?
More and more people around the world take serious interest in gold. The demand for gold is supported by different categories of people – economists, investors, housekeepers, business people, politicians... How is this growth manifested?
Dry statistics. Gold prices
By now prices of the yellow precious metal have reached a record level of over $1200 an ounce. Throughout the last week gold prices fluctuated in this range. The peak was reached on February 11 and it was $1246 an ounce. The price of February 18 is $1206.
According to statistics, during the previous week gold prices grew by 7%, which is the steepest growth for the last 7 years. Previous record was set in December 2008, when the prices grew by 9% in a week's time.
Experts' evaluations
Some experts point out the seasonal factor as the main reason. For instance, Ross Norman, the head of Sharps Pixley, claimed that in the last two years prices surged due to the Indian fire festival, Lohri, and the Chinese New Year. He adds that this year the seasonal factor is having more impact.
Journalists from The Economist consider the main reason to be people's anxiety about future. According to them, people ask many questions on the state of the world economy, having plenty of reasons for that. For instance, the Chinese economy is unstable, oil prices decrease, the state of the world banks is shaky, and the dollar is fluctuating.
Another growth factor comes from news of the World Gold Council. Its officials announced that gold mining went down by 3%, and this is the first fall starting from 2008. Economists look forward the increase in demand for gold, following the law of supply and demand.
Speaking about skeptics, it is worth mentioning the Goldman Sachs bank. According to its experts, gold could decrease in 2016 due to possible increase of the US interest rate.
How to protect and multiply one's finances?
According to statistics, average people are showing more interest in the yellow precious metal. For example, in 2015 Indians bought golden jewelry more often in the second half of the year than in the first one. In China people chose gold bars instead. Experts discovered the tendency of people to protect themselves from economic uncertainty.
Gold is the choice of many experts, investors and average people who care about their financial welfare. Don't miss your golden moment. Read more articles and learn about gold and how to earn with it: 10 and 1 curious fact about the Philippines and gold – Global InterGold.
