Tuesday, November 1, 2011

What are the real reasons behind the rise in gold prices?

Day by day gold prices is making a new record in the process of rising gold may reach to the borders of  1500 and $ 2000 so in the future. The real reasons behind this unprecedented rise in the price of gold n they are :-
1 – increasing deficit in balance of trade:
The increasing deficit in balance of trade to the United States and one of the reasons for the high price of gold, and this deficit is caused by increasing the proportion of imports to private consumption, including the volume of exports. When the ratio of the rise in imports by 1.4% and the percentage rise in exports, 0.4% becomes a deficit in the trade balance and thus increase the price of gold.
2 – low output:
The gold is very rare n the output of gold is low this way the  decline in production of some gold-producing countries to be another reason added to the reasons for the high prices of gold, the most important gold-producing countries are: South Africa and the United States, Canada, Australia, China and the Philippines. Thus causes a rise in gold prices.
3 – political and economic factors:
Political and economic factors play an important role in the rise in gold prices in global markets, as happened in the Asian markets.when gold prices rose by more than 25% compared to last year. Due to political reason country will not able to produce gold because every sector is depend on the political of the country .

4 – increase in demand:
the  reasons for the rise in gold prices to increase the size of global demand and shortages in supply of it, pushing gold prices to rise by much more than 50% of the previous price, and perhaps shows the correlation between high prices of crude oil and rise in gold prices during the last period, and can say that the increase in revenues oil countries heading towards the gold market, which led to higher gold prices. Gold is rare n the demand is high simply it cause the gold price high

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