The past year has seen a great fluctuation in gold prices informs US Gold Bureau which is directly involved with the yellow metal. There are many theories that are coming up for the sudden decline in the price of gold. People who are first time investors in gold or don’t know the trades very well are baffled as no concrete and straightforward answer is being provided by any of the traders and experts in the Gold trading industry. Well a straight and simple answer is not possible due to the fact that gold prices depend upon several factors that are beyond the control of one investor, one community, and one nation or for that matter even one continent. Gold prices depend upon a myriad of factors that somehow influence its prices in the international and the local market. The various factors that lead to the rise and fall can only be understood rationally and in a holistic way once you yourself start trading in Gold or become a gold trader.
While talking to experts at US Gold Bureau we had an impression that the Gold prices that are plummeting today cannot be attributed to one single factor. Even statements issued by industry experts do have a bearing on the Gold prices. Any actions or discussions by banks and institutions or big investors have a far reaching effect on the prices of Gold. Experts at US Gold Bureau are however optimistic that this is just a passing phase and the best time for small or large investors to put their money into the yellow metal. Going in depth and conducting a research on our own level we came across various other views put forward by industry experts who have a long dealing in the commodities market.
According to one such institution the fall in the prices of Gold has been attributed to the fall in the inflation at the global level. This has led to the reduction of gold’s value as hedge fund against rising prices. Scenarios have been witnessed where investors that were betting on an outburst of inflation are scrambling to reverse their bets and exit their gold positions at any price. Although its hard for consumers to believe that inflation is going down yet the survey that was conducted on 30 nations representing a world population of 90% suggested the fall in inflation.
Then there is yet another view which talks about panic selling. Many industry experts are of the view that while gold prices were showing a southward trend people started selling the precious metal which led to more downfalls in the prices but buying reached a new high. The decline has been confined to the futures market or the paper market whereas the ground reality is that the U.S. mint sold 209000 ounces of gold in forms of coins this year while the figure was at 108,000 ounces last year when Gold prices were all time high.
Amid all this chaos and confusion central banks that remain the biggest buyers of Gold have not shown any decline in their gold intake. US gold Bureau experts claim had the situation been that bad Central banks would have been the forerunners in cutting down on their gold intake which surely is a good sign for Gold investors.
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US GOLD BUREAU 