Since ancient times, gold has been used as a universal measure of value and wealth. Over time, the attitude towards the precious metal has changed somewhat, but it still remains in value.
To understand the reasons for the growth in the value of gold, you can use the conditional differentiation by the main industries of its use. At the household level, it is perceived under the guise of jewelry consisting of a noble metal, in the financial sector - an investment tool, in industry - a consumable for the manufacture of devices for various purposes.
Economists and financiers associate the rise in prices for jewelry with:
• an increase in the cost of raw materials;
• the policy of producers and their reaction to the rise in the level of demand;
• buying activity, which arose as a result of the release of some part of the funds.
The period of massive demand for jewelry is annually, from December to March. During this time, some stores hold numerous promotions aimed at getting the maximum profit from sales. But at the same time, they do not forget to adjust the prices, because the pre-holiday seasons are the time for skimming the jewelry trade.
The increase in the value of investment gold is interconnected with the current situation in the world market. Due to volatility and the absence of clear conditions that ensure immediate growth, it is rather difficult to predict price behavior in the future period. The emergence of an ambiguous situation in the market can provoke both an uptrend and a downtrend. In any case, fluctuations should be expected when:
• decline in the value of the dollar and other significant currencies;
• the onset of a crisis situation for the economy;
• political instability.
Buying gold can be a kind of defensive reaction, because its value is undeniable. Real estate and land in the long term only lose value, but gold is growing.
Well, the increase in prices for industrial gold is explained by a simple increase in the cost of its extraction and processing, which, against the background of the depletion of world reserves of the precious metal, is considered a simple pattern.
