The Demand And Supply Analysis Of Gold
Demand and supply analysis of gold
Gold is a precious metal which holds great value. It is yellowish in colour and it is used in making jewels and other valuable assets. It represents a store of wealth and economic strength to the world and is a strong force in international monetary command. Gold is the “backbone of all economies” (Baber et al., 2015, p. 1). The investment role of gold has become significant in recent times after the 2008 financial crisis. The gold possesses strong, imperishable, admirable shine. The metal as been used for decades as jewelry, and decoration ornaments. It is difficult to obtain; for this reason it has gained high standards and regards in many culture. It is also used in manufacturing and dentistry (Fei & Adibe , 2010). …show more content…
The high consumption by these countries is attributed to social interest and cultural significance of gold to consumers (Baber et al., 2015). The central banks hold considerable amount of gold reserves as strategic investment (Fei & Adibe , 2010).
Demand for gold: Gold is demanded by government and private investors and it is traded on the financial market. Gold is demanded for investment and private purposes. About two-thirds of gold supplied in a year goes for private usage. India’s consumption of gold is about 20% of global production, followed by China (Fei & Adibe , 2010). Monetary demand for gold and sale of by central bank reserves in late 1990 decreased gold prices whereas gold demand by private users increased the prices of gold during the financial crisis (Baber et al.,
Gold is a precious metal which holds great value. It is yellowish in colour and it is used in making jewels and other valuable assets. It represents a store of wealth and economic strength to the world and is a strong force in international monetary command. Gold is the “backbone of all economies” (Baber et al., 2015, p. 1). The investment role of gold has become significant in recent times after the 2008 financial crisis. The gold possesses strong, imperishable, admirable shine. The metal as been used for decades as jewelry, and decoration ornaments. It is difficult to obtain; for this reason it has gained high standards and regards in many culture. It is also used in manufacturing and dentistry (Fei & Adibe , 2010). …show more content…
The high consumption by these countries is attributed to social interest and cultural significance of gold to consumers (Baber et al., 2015). The central banks hold considerable amount of gold reserves as strategic investment (Fei & Adibe , 2010).
Demand for gold: Gold is demanded by government and private investors and it is traded on the financial market. Gold is demanded for investment and private purposes. About two-thirds of gold supplied in a year goes for private usage. India’s consumption of gold is about 20% of global production, followed by China (Fei & Adibe , 2010). Monetary demand for gold and sale of by central bank reserves in late 1990 decreased gold prices whereas gold demand by private users increased the prices of gold during the financial crisis (Baber et al.,