LOVE AND FEAR IN GOLD MARKET
There are two main driving forces in the world gold market today is called love,namely the factors of love and one fear is the fear factor. Love factor represented primarily by demand from the two major countries that people menggandrungi gold is China and India. While the main fear factor comes from the world of investing.
LOVE AND FEAR IN GOLD MARKET By: Muhaimin Iqbal There are two main driving forces in the world gold market today is called love,n amely the factors of love and one fear is the fear factor. Love factor represented primarily by demand f rom the two major countries that people menggandrungi gold is China and India. While the main fear factor comes from the world of investing. Based on data from the World Gold Council's latest, factors generally love the most representation with gold demand for jewelry, bullion and coins or physical gold demand. In the last quarter numbers worldwide reached 742.8 tonnes or 68% of total world gold demand. Of this 55% alone coming from the two aforementioned countries such as China and India. General fear factor comes from the world of investments buy gold in the form of ETFs (Exchange-Traded Fund), and the like. It is true that buying physical gold as well as a fear-driven, but in the world of global investing is more of a role in the form of paper gold trading gold as ETF and the like. The numbers in the last quarter reached 136 tonnes or 12.5% of world gold demand. Although it represents only 12.5% of the demand, the fear factor is very easy to spread and easy to affect the world price of gold. What are they afraid that they purchase an investment in gold?, They are afraid of the fall in value of paper money, fear of recession, fear of the fiscal cliff, frightened by the diligent work of Ben Bernanke to print money out of the clouds etc.. Instead of love factor because it is the culture in general in China and India-do buy gold at a particular celebration, culture does not easily spread. So even though the need is great - from these two countries only require 55% of the 68% demand or 37% of global gold demand, the impact on the price movement is not immediate - not as volatile factors in the fear that drives the investment world. Because of the love and the fear factor working in different economic situations - the general interaction of both makes relatively stable price of gold to the price of other goods of human needs. Factor love to work when the economy is good, good incomes - they have more money to buy gold. Fear factor works the opposite of the current economic situation worsened, people are afraid of losing their savings so that the purchasing power of money trying to secure the money in the form of gold or gold-related investments, ETF etc.. As a result of the presence of love and fear the two factors mentioned above, there's always the right time to buy gold - that is, when you have more money and are not immediately used, gold is one of the most secure solution that. Wa Allah knows best. Source: geraidinar.com