In recent years, two new patterns of demand have been evident in the gold market. In 2008 it was estimated that the major global gold demand from the Middle East and East Asia regions came together with the Indian subcontinent.

The number was 70% for India, followed by 55% from the USA, China, Turkey and Italy. It was speculated that this sudden surge in demand is attributed to gold in the current global economic condition.

Of the total demand for gold jewelry accounts for about two thirds of demand. It was estimated that in 2008, production of jewelry accounted for about 61 billion U.S. dollars. Research shows that the U.S., than the biggest gold market in the world, while India is the largest consumer. The reason for this type of consumption of gold in India is the importance of gold in the Indian culture and religion.

The investment industry, which expanded the most part over the years, consists mainly of gold. The conversion of gold into a financial product is something that is quite an extent, responsible for the growing demand of gold. This trend of investment in gold was the most obvious and often in the past five years. Investment in gold is approximately 412% increase in demand for gold in these years.

It is because the value of gold in the financial system, for the fact that it is a magnet for investors, was both individually and through the organization accounts. Similar to stocks, people often buy gold, then wait for the price upward, so they sell it, and turn a profit. The main cause of this increase in prices is because the supply of gold short life of the demand.

Gold is the commodity, the value is not lost, no matter what the circumstances and is considered a solid investment, resulting in a hedge in a crunch. A United Nations report states that more than 10% of the world population of people who are over retirement age is included. People in such situations can buy all their savings and gold, so they some means for their investments lose all their value.

The characteristic of gold that financial as the most reliable product and the most stable it is the perfect solution to the instability and uncertainty of the economy. Gold is also the perfect hedge against exchange rate fluctuations. With the volatility of exchange rates of gold is always a preference for investments. Not only the currency that is to fluctuations, but the credit risk is also a great accompanied by the risk associated with the equity markets. People who made huge investments in stocks had huge losses when the markets crashed around the world. All these factors tend to service the increased demand from worldwide gold account as far as investment is concerned. This has increased the demand and prices of gold to a record level.

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