Recently, quotes an ounce of gold on world markets are zigzagging and downhill.Periodically, the price stops at some level, but seen a decrease.
Specific measures in this regard are as follows: in a short period of time from July to August there was a sharp rise in the price of 400 dollars, then just 10 days the price has lost $ 200, although in general this year rose 34 percent. Now there has been reversed. On the London Stock Exchange before the closing of precious metals on the past weekend the last price was fixed at 1,762 dollars. On the New York Stock Exchange – 1,789 dollars. Recall that the highest historical figure price per troy ounce (31.1 grams) was recorded in August 2011 – 1,897 dollars.During the period of financial instability in Europe, such a phenomenon in the gold market raises questions, because gold has traditionally been considered a reliable niche for the preservation of capital in such circumstances. The head of French investment agency Federal Finance Sylvain Serpandur provides an explanation for this phenomenon.
He estimated that gold as a “speculative commodity” to reach this year’s highest quotation on world markets, has caused its owners tempted to sell it to make money on the rising prices. On the other hand, since the financial crisis in Europe, many investors have suffered losses as a result of bank failures and because of falling stock prices, bonds, other securities. Therefore, to offset the losses, they began to sell some of its gold reserves.
As a result, the market formed a tide of gold to sell, there is a proposal begins to exceed demand. According to the French expert, year-end price of gold could fall to $ 1,500, as was the case in May last year, after which at the same time and began the ascent.
In the banking sector of Luxembourg, where the concentration of 145 financial institutions, believe that lowering the price of gold is due to other circumstances and the market. First, a stable dollar. Typically, gold begins to rise in price when the dollar falls. Now this does not happen, and reeling in the main than the dollar and the euro. Second, interest in gold is manifested most in the growth of inflation in order to conserve capital. Currently, inflation in the euro area accounts for only 2 per cent and the increase is not predicted. Therefore, according to the Luxembourg banking sector, the price of precious metals could well take the opposite direction and mark the rise
Specific measures in this regard are as follows: in a short period of time from July to August there was a sharp rise in the price of 400 dollars, then just 10 days the price has lost $ 200, although in general this year rose 34 percent. Now there has been reversed. On the London Stock Exchange before the closing of precious metals on the past weekend the last price was fixed at 1,762 dollars. On the New York Stock Exchange – 1,789 dollars. Recall that the highest historical figure price per troy ounce (31.1 grams) was recorded in August 2011 – 1,897 dollars.During the period of financial instability in Europe, such a phenomenon in the gold market raises questions, because gold has traditionally been considered a reliable niche for the preservation of capital in such circumstances. The head of French investment agency Federal Finance Sylvain Serpandur provides an explanation for this phenomenon.
He estimated that gold as a “speculative commodity” to reach this year’s highest quotation on world markets, has caused its owners tempted to sell it to make money on the rising prices. On the other hand, since the financial crisis in Europe, many investors have suffered losses as a result of bank failures and because of falling stock prices, bonds, other securities. Therefore, to offset the losses, they began to sell some of its gold reserves.
As a result, the market formed a tide of gold to sell, there is a proposal begins to exceed demand. According to the French expert, year-end price of gold could fall to $ 1,500, as was the case in May last year, after which at the same time and began the ascent.
In the banking sector of Luxembourg, where the concentration of 145 financial institutions, believe that lowering the price of gold is due to other circumstances and the market. First, a stable dollar. Typically, gold begins to rise in price when the dollar falls. Now this does not happen, and reeling in the main than the dollar and the euro. Second, interest in gold is manifested most in the growth of inflation in order to conserve capital. Currently, inflation in the euro area accounts for only 2 per cent and the increase is not predicted. Therefore, according to the Luxembourg banking sector, the price of precious metals could well take the opposite direction and mark the rise
