LOVE AND FEAR IN GOLD MARKET

							            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