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Experts and analysts in the field of gold causes the rise in gold prices in five key factors, but first and foremost it must be clarified that gold like any other commodity is affected by the law of supply and demand, for example, gold prices will rise if demand for the metal in the stability or decline Or even higher than the rate of increase of demand, and vice versa of course true if increased supply in the case of demand stability prices will decline, but the problem here is the difficulty of meeting the increased demand for the metal increase supply because the cost of production and extraction of gold is greatly increased because of increased risk of drilling for Access to the site Najm, most of which are located in remote areas and therefore the production of the metal does not cover the increased demand for it. For the major gold producers in the world, for follow-up drilling and extraction follow the equation of the ounce = US $ 1000, a high cost that complicates the issue.
As for the five main factors behind the increase in global gold prices, the first of which is the decline in the US dollar (the world's main currency) and the increase in inflation in the United States (the world's most powerful economy undisputedly). The actions taken by the Federal Reserve (US Central Bank) to stimulate the economy to double the dollar.
As for the five main factors behind the increase in global gold prices, the first of which is the decline in the US dollar (the world's main currency) and the increase in inflation in the United States (the world's most powerful economy undisputedly). The actions taken by the Federal Reserve (US Central Bank) to stimulate the economy to double the dollar.
As it is known that the decline in the dollar exchange rate raises global gold prices, but in spite of that it is possible to fall or stabilize gold prices in the same period in euros (the single currency in Europe), for example, for example, the prices of gold during the summer and autumn of 2010 has depreciated in dollar terms but remained stable over the same period in the Japanese yen and the euro.
While the second factor in the rise in gold prices is due to the strength of demand in emerging markets. It is worth mentioning that gold is a good way to boast and save, especially in the emerging class in India and China, which are leading the global growth of demand for gold.
The third factor is due to the transformation of the central banks from the position of the seller to buyers of precious metal. Over the past decades, the central banks of the various countries of the world have sold most of their gold reserves after these countries broke their currencies, but the situation changed completely in the last period The position of many banks to buyers to strengthen their reserves of metal such as Thailand and Russia.
Given the current economic conditions in the world, central banks may continue to buy gold as a means to avoid the risks of inflation and the decline of the dollar especially in the long term. Many developing countries have decided to reduce most of their dollar reserves in favor of increasing their yellow metal. The orbit of decades.
For the fourth factor leading to the increase in gold prices due to investors' belief that gold is a protective asset that protects their money from the risks of economic instability, investors have long been accustomed to resort to gold after exit from high risk investments.
As for the fifth reason, it is simply restricting gold exports. The difference between demand and supply offers almost certain expectations because gold prices are undoubtedly higher. The growth of gold production has declined significantly, with the average decline in production over the last 10 years (since 2001) % Annually.
Experts and experts estimated the world's gold production over the past 110 years at just 3.9% of the total value of money, stocks and bonds worldwide, up from 1.3% in 2000. However, the current ratio is still close to the 1.3% ), Which is well below the 12.1% recorded in 1980, when gold prices peaked.
While the second factor in the rise in gold prices is due to the strength of demand in emerging markets. It is worth mentioning that gold is a good way to boast and save, especially in the emerging class in India and China, which are leading the global growth of demand for gold.
The third factor is due to the transformation of the central banks from the position of the seller to buyers of precious metal. Over the past decades, the central banks of the various countries of the world have sold most of their gold reserves after these countries broke their currencies, but the situation changed completely in the last period The position of many banks to buyers to strengthen their reserves of metal such as Thailand and Russia.
Given the current economic conditions in the world, central banks may continue to buy gold as a means to avoid the risks of inflation and the decline of the dollar especially in the long term. Many developing countries have decided to reduce most of their dollar reserves in favor of increasing their yellow metal. The orbit of decades.
For the fourth factor leading to the increase in gold prices due to investors' belief that gold is a protective asset that protects their money from the risks of economic instability, investors have long been accustomed to resort to gold after exit from high risk investments.
As for the fifth reason, it is simply restricting gold exports. The difference between demand and supply offers almost certain expectations because gold prices are undoubtedly higher. The growth of gold production has declined significantly, with the average decline in production over the last 10 years (since 2001) % Annually.
Experts and experts estimated the world's gold production over the past 110 years at just 3.9% of the total value of money, stocks and bonds worldwide, up from 1.3% in 2000. However, the current ratio is still close to the 1.3% ), Which is well below the 12.1% recorded in 1980, when gold prices peaked.
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