Welcome

Suddenly just feel that blogspot is convenient
so welcome to my blog
hope you guys enjoy it

Sunday, December 5, 2010

Talking about gold in economics

Gold is a metal that needed in lot of industry
especially technology sector
whereby they needs lot of gold to produce their product
for example microchips as uses
technology devices such as computers and also cell phones
but these have came to a very little impact on the gold prices fluctuations

Normally gold prices chart movement is determine by the theory of supply and demand
which the increase in supply will decrease the price and vice versa
the increase in demand will increase the price and vice versa

therefore when decrease in dollar price, which will follow by other country currency, and the gold price will increase.

Other than this there are other factors which affect the increase of gold price.

Base on economics theory also,
the increase in demand for gold will increase in the gold price
lot of country would like to purchase gold especially China and India

Other factors are

central bank reserves, low interest rate will reduce the amount of people invest in paper money but to invest in gold to get a better return which give rise in investment in gold and increase the price of gold

Production of gold

for more clearer details








No comments:

Post a Comment