Gold's Demand In The Recent Times

By Joann Chandler


What are the current demand trends where gold is concerned? This is an important question and one that smart investors will ask. Since it is still in the first quarter of 2013 it is not possible to evaluate a lot of data from the current year, but 2012 can be examined in order to help determine where the market is headed. You can also look at historical data and try to predict what will happen next but this is not the most effective way to develop a forecast.

In 2012s final quarter, gold has risen by a huge 6% in the US and the trend has been forecasted to continue throughout 2013. Despite the fact that the spot price has dipped slightly, the demand from all the other sectors has gradually increased. With the current enormous debt that US is carrying in addition to the huge amount of cash floating around due to the effects of the Federal Reserve's quantitative easing measures, gold bullion is becoming a popular choice as an investment option.

The medical field and many other industries and sectors have also seen an increase in the amount of this ore that is needed on an annual basis. The actual demand around the globe in 2012 Q4 was up 4%, and this is less than the American market but it still shows a significant continuing upward trend. That is a reason for many individuals to get into the sector in order to see gains over time.

A significant share of this increasing demand is attributed to the emerging countries around the globe. In such booming economies, greater opportunities are arising and their population is, in the same manner, improving rapidly too in terms of their income. With this, gold purchases for various purposes have become more common as the affordability of these people starts to increase.

The other more major portion of such demand would be attributed to that of the central banks from various nations. Usually, these institutions would be trading in gold in huge amounts at a time and this will significantly alter the trends in the market. Throughout 2012, the purchases by these powerful entities were prevalent and the sale of these precious metals was practically non-existent. The demand was sky high as a result of this. It's been forecasted that this is likely to go on in 2013 though at the moment, nothing can be certain.




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