Gold and its impact on the global economic situation

Gold and its impact on the global economic situation In the category investing in gold more articles and learn more information about Gold and its impact on the global economic situation Reviews Price Specifications Features Image manuals videos Accessories All this in metal detectors for gold.

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Gold plays a multifaceted role in the global economic landscape, influencing various aspects of financial markets, currencies, and investor sentiment. Here’s how gold impacts the global economic situation:

1. Safe-Haven Asset:

Crisis Hedge: In times of geopolitical uncertainty, economic turmoil, or market volatility, gold serves as a safe haven. Investors flock to gold, driving up its demand and price, as it’s seen as a store of value.

2. Currency and Monetary Policy:

Inflation Hedge: Gold acts as a hedge against inflation. When there’s concern about currency devaluation or rising inflation rates, investors turn to gold to preserve purchasing power.

Central Bank Reserves: Central banks hold gold as part of their reserves, contributing to confidence in a country’s currency and financial stability.

3. Market Sentiment:

Risk Perception: Gold prices often reflect investor sentiment. When there’s a lack of confidence in the economy or financial markets, gold prices tend to rise due to increased demand.

4. Investment and Trade:

Portfolio Diversification: Investors diversify their portfolios by including gold, balancing risk during market uncertainties.

Commodity Trading: Gold is actively traded as a commodity on various exchanges worldwide, impacting financial markets.

5. Industrial Use:

Technology and Industry: Gold’s conductivity and corrosion resistance make it valuable in various industries like electronics and medicine, influencing supply and demand dynamics.

6. Global Economic Health Indicator:

Recession Signals: Gold prices can indicate economic downturns or financial crises. Sudden spikes in gold prices may suggest underlying economic instability.

Gold’s significance goes beyond being a precious metal. It acts as a barometer for global economic health, impacting investor behavior, currency values, and market perceptions. Its role as a safe haven, inflation hedge, and portfolio diversifier shapes its influence on the global economic situation. Monitoring gold prices and understanding its impact can provide insights into broader economic trends and market sentiment.

Gold and its impact on the global economic situation

View special report the impact of gold and the dimensions of the global economic situation and the many variables that would make a difference in the economies of States, especially the major powers to cast its shadow on the rest of the world and the report came as follows

Gold and its impact on the global economic situation

Gold and its impact on the global economic situation

The World Gold Council said in its report on trends in demand for gold that the volume of global demand for gold reached 990, 0 tonnes in the second quarter of 2012 registered a decrease of 7% compared with the second quarter, with 1, 065.8 tons. This decrease in demand partly to comparison with exceptional demand rates last year as the downturn reflects the difficulties experienced by the world economy climate. In this regard, the performance of gold did not come out of expectations as continued its function as a means of hedging and source of liquidity and demand for gold remained relatively stable at 51, 2 billion dollars compared to where she was 51.6 billion US dollars in the second quarter of 2011. During the quarter, the price of gold averaged $ 1609.49 a Troy ounce, so a rise of 7% on average in the second quarter of 2011.

 

In India, the amount of investment in gold and demand to 1746.77 tons registered a decrease of 56.5 tons in the second quarter of 2011. The rate of investment demand 56.5 tons, less than half the rate recorded in the second quarter of 2011. As the volume of demand for Indian gold fell sharply to 124.8 tons from within tons, an average of 30% on an annual basis. This decline partly reflects the strength of demand in the second quarter of 2011 as it returns to the Indian investors benefit from twice the value of the rupiah against the u.s. dollar, with the exchange rate fluctuation between sync currencies and rising gold price to the highest even 30,000 rupees per 10 grams in June with the high rate of domestic inflation and rising concerns about the decline in quarterly profits in China, the volume of investment in gold and demand 141.51 tons registered a decrease of 7% from 156.6 tons during the same Quarter of last year. The decline in the rate of investment demand by about 4% year on year to 51.1 tons due to restrictions imposed by investors as a reaction to the lack of indicators for gold prices. He also encouraged all of the gold price stability and slowing GDP growth consumers not to buy gold that declined year on year by 9% to 93.8 tons.

Has beefed up the continuing sovereign-debt crisis in the euro zone, European investors ‘ confidence in the importance of acquiring gold savings, where demand for bullion and gold coins by retail investors, an increase of 15 percent year-on-year to 77.6 tons or 19% higher than the quarterly average over five years which 65.2 tons.

 

Gold

 

The official sector demand rate for gold in this unprecedented rise quarter amounted to 157.5 tons, or more than twice the rate recorded in the second quarter of 2011, representing 16% of total world demand. And has strengthened a number of central banks gold stocks during that period, including the National Bank of Kazakhstan and central banks in the Philippines, Russia and Ukraine, despite the economic difficulties, the ETFs are relatively flexible, with net outflows amounted to 0.8 tons on an annual basis.

Gold

Marx said follicle Managing Director of investment Department at World Gold Council: “the performance of gold reflects the difficulties facing the climate economy. The decline in both China and India-representing more than 45% of the total the second highest quarterly gold jewelry demand and investing in gold in the world-to lower global demand. Despite the uncertainty, it is clear that the strength of the gold key property as a means to maintain a reserve of wealth and as a source of liquidity. And is confirmed by the activity of the central banks, which are major long-term investors at all, so continue to increase their reserves of gold in an attempt to diversify your savings and protection from the risks of relying on a foreign currency or number. ”

 

Statistics on the supply and demand of gold in the second quarter of 2012 with gold demand in the second quarter 990.0 tons, a decrease of 7% compared with the same period in 2011 and reduced demand for gold standard rate by 1% year on year to 51.2 billion dollars as the average price of gold to 1, 609.49 US dollars a Troy ounce at rise of 7% compared with the average price recorded in the second quarter of 2011.

The volume of demand for gold sector 3.5 tonnes registered a decline by 15% compared with 490.6 tons in the second quarter of 2011, with the exception of India and China, where demand for gold fell 4%.

Decline in demand for investment in gold by about 23% year on year to 302.0 tons, slightly lower than the average quarterly over five years of 340.3 tonnes, with the exception of India and China, where retail investment rate has increased by about 16 percent compared to a ton.

Stabilized demand for ETFs and similar banking products in the second quarter of 2012 as the quarterly level, where slightly more than superior sales demand.

Total demand for gold for the technical sector in the second quarter 112.2 tons, a decrease of 5% during the same period in 2011.

Undo view gold by 6% year on year due to the decline in recorded 1059 recycling activities.

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