ROCKET OF GOLD PRICE As of Dec 7, world gold price reached a new record high price of $1,430.50 an ounce compared to … of … and will rise next week, a survey found. But how come the situation happened? Let’s check it out
I. Definition of gold As looked up in the dictionary, gold is a soft, yellow, corrosion-resistant element, the most malleable and ductile metal, occurring in veins and alluvial deposits and recovered by mining or by panning or sluicing. A good thermal and electrical conductor, gold is generally alloyed to increase its strength, and it is used as an international monetary standard, in jewelry, for decoration, and as a plated coating on a wide variety of electrical and mechanical components
Because gold is considered as one of solid and precious elements, it’s been used to be an at par exchanger in transactions since the ancient times. Today, it has become one of people’s way of saving. That’s why every single change in gold price always draws people’s attention since it affects many other aspects in life.
II. Reasons why gold price is rising Trust in both dollar and euro is low (More explanations about this matter are needed) People rush to sell gold in the holiday season for buying presents of jewelry Gold = safe place in times of inflation and financial crisis (More explanations is needed)
Considered as an alternative monetary assets today Printing money = fears of the people over the paper currencies switching to more tangible assets Economic growth = Demand for gold