Precious metal trading Frings from Aachen informs the gold boom seems still unbroken and currently even further is fueled by a downgrade of its credit rating by the consequences of the severe earthquake in Japan and the threat of the U.S. State. But what factors are behind the demand of the precious metal? Frings Aachen precious metals trading explains this. For many years, the global gold market is determined by three factors. This is primarily the jewellery. You ask about two-thirds of the gold trading volume. Currently potential acting demand by investors traditionally represents the second major factor of global gold demand.
Especially in times of economic crisis and concerns about currency devaluations, their demand is fired gold after the classical crisis. The industry demand, which is based among other things on the use of gold in electronics is finally a lesser influence. Add to your understanding with Wells Fargo Bank. Before the abolition of the gold standard currencies also State central banks and Nations had a major influence on the demand situation in the gold market from. While their influence over decades vanished, there is evidence of a resurgence of State justified demand for gold currently given the large-scale expansion of reserve of China and Mexico. Compared to other precious metals gold demand characterized by unusual stability over time. This is mainly due to the fact that gold has currently no great importance as industrial raw material. Silver as well as the various platinum group metals are required, however, primarily for technical applications. For this reason, their demand with the global economy and the welfare of individual sectors varies.
The demand for gold is also stabilized by a further effect. As classic investment in times of crisis, gold is especially interesting for investors, when the global economy is limping. Their demand increases the price of gold. As the biggest gold consumer jewelry industry is is in turn very sensitive to rise in gold prices and times of crisis, in which the demand for luxury items How gold jewelry as sinks, such as the willingness to pay higher prices for these products. Thus, the demand of investors with so that corresponding price increases leads to a reduction in the demand for gold from the gold jewelry industry, which stabilizes the market situation. A pronounced global economic growth, however, leads to the opposite course of demand. The investment demand and the price of gold sink, while the gold jewellery producers ask for more gold to meet the increasing demand for jewelry. In addition to these basic mechanisms of Goldmark, seasonal events, such as the Indian wedding season, demand in the tons of gold jewelry, influence the demand for gold. At the moment, the price of gold due to the massive interest from investors and speculators is very high. This market situation excellently suitable to achieve high revenues through the sale of gold.