What price is going on with the gold? After so many years of upward trends of these now knows only one direction, down. However, it is not to identify a single reason, rather there are a variety of reasons, which sends the precious metal is currently on a downward spiral.
The precious metal experts at Commerzbank have released on last Friday the following comment:
“The price of gold has continued its descent in the night and for the first time since August of 2010 under the brand of 1,200 dollars per ounce of like. Since the beginning of the quarter, the losses amount to 25%, the biggest quarterly loss since the release of the gold price in the beginning of the 70s. In view of the continued price decline and the associated loss of Confidence, investors are retreating further from the Gold. The holdings of Gold ETFs declined yesterday to 9.5 tonnes, bringing the outflows amount since the beginning of the Quarter to 401 tons. This is more than coins and bullion has been in the past few quarters bought. The investment demand could thus deliver in this quarter a negative contribution to the total demand for gold. An end to the downturn is not yet in sight, especially since physical demand in Asia is very modest. To India and also the neighboring country Sri Lanka now has a temporary 10% tax on gold imports are collected. Thus, the gold smuggling from Sri Lanka to be contained to India. India is currently trying by all means, the gold demand in the world’s largest gold consumer country, to curb. This was increased after the fall in prices in April, solid and had contributed to the imports in may, a record high Gold of 162 tonnes. The gold high performance imports by the Indian government for the record deficit held responsible, which uses the local currency under pressure. The measures seem to show the government and the Central Bank’s desired effect, because the demand for gold by Indian households is in spite of the recent fall in local gold prices to a 2-year low so far, very modest.“
As can be seen, it is many interlocking gears, which push the price of gold from the throne. As it continues, is still uncertain. What is prophesy today, will deal with the Gold in the future as our minds. Because a thousands-year-old investment instrument, you can’t beat forever. Because Gold is more than an asset class. It is a myth and has its own history.
Do you want to know more about the background of the gold? Read my book:
THE GREED FOR GOLD
Sources: quote: Commerzbank AG – Daily commodities; article image: bagal / pixelio.de Video: BSTV