2006-10-28 19:49:46 · 9 answers · asked by Raju R 1 in Business & Finance ➔ Other - Business & Finance
The dumping of gold into the market by several nations' central banks (whether through leasing or outright sales) has artificially increased supply, and therefore lowered the price.
The desire for gold as jewelry affects demand. The gold market in India is closely watched, since Indian brides are often dripping with gold, when they walk down the aisle. If there is strong buying in India, during the autumn "wedding season," prices can increase.
The desire for gold as a "hedge" against inflation affects demand. With the USA printing money like mad, inflation expectations are beginning to grow. As this trend continues, look for the price to increase.
The stability of the international political scene affects demand. As political turmoil increases, many people purchase gold because it has maintained its purchasing power, through centuries of unrest and turmoil; paper dollars have not. As the political situation heats up, expect the price of gold to increase.
Sooner or later, the artificial stimulation of supply will cease. When that happens, look for the price of gold to go through the roof.
2006-10-29 03:29:05 · answer #1 · answered by Larry Powers 3 · 0⤊ 1⤋
Well, I hear that because the Iraq War is going on, some people figure they should put their money on something valuable, which would be gold in many eyes, so the price of gold has risen... or something like that.
That's just one explanation I've heard, though.
2006-10-29 01:58:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
oil price
2006-10-29 02:16:22 · answer #3 · answered by captain 1 · 0⤊ 0⤋
supply and demand... fears and apprehensions... in some places cultural issues.
2006-10-29 01:57:51 · answer #4 · answered by TK-421 3 · 0⤊ 0⤋
due to incresing in population or reducing of natural resource
2006-10-29 02:22:53 · answer #5 · answered by vikas 1 · 0⤊ 0⤋
supply and demand
2006-10-29 01:54:56 · answer #6 · answered by kutingtingting 3 · 0⤊ 0⤋
speculation, demand, geopolitics, inflation, etc.
2006-10-29 01:58:53 · answer #7 · answered by Huguenot 5 · 0⤊ 0⤋
supply and demand---trading
2006-10-29 01:57:40 · answer #8 · answered by cork 7 · 0⤊ 0⤋
rarity, purity...how in demand it is ect...
2006-10-29 01:51:29 · answer #9 · answered by Gingershiv 3 · 0⤊ 0⤋