gold price in the US
The largest demand for gold is in jewelry and investments. Gold is known as ametal that is easily used and has many industrial applications. Since gold is so durable andluxurious, many people invest in jewelry, stocks, and gold bonds. Considering the fact thatgold is considered a world-wide valuable good, many economies have gold reserves tohelp protect themselves in times of need. Nevertheless, factors of supply and demand havecontributed to the decrease of the price of gold, which has reached an all time low since1978. This reduction has raised many concerns in the United States having them weigh thedifferent factors of the price, supply and demand, and consumption that may be affecting The price change commands attention since gold serves to indicate price stabilityor inflation. Although, inflation is not as threatening in the United States because it ismore industrialized, the bigger fear is facing deflation with our countries gold currency.Gold averaged 294 dollars per ounce in 1998, when at one time the prices were in the mid$400-500 per ounce. Due to fact that gold prices have been so low, Central Banks havethreatened to sell their gold inventories fearing that gold is no
By the end of September, pricesmade a positive change showing a first mark in the 300's, reaching a high of $315 perounce. During the past year, according to the JCK national poll, over 150independent jewelers support the figures. 4 metric tons in 1998, which is an 18% increase. Even though, more gold has been placed on the market the demand hadincreased in the past month due to agreements and regulations placed to control theamount of gold being released on the market. Gold is also used as acommodity, used in jewelry and by industry. Thegrowing demand for gold jewelry helped push gold usage in the United Sates to a firsttime report of 428. Stocks have lost over90% percent of their investments in gold and have many investors wondering if the valueof gold is depreciating. Having a better understanding with whatmay happen in the future investors remain optimistic. They found that two-thirds of respondents(68%) said they had a sales increase over the past year, while the other two out of five(38%) claimed to have sales gains of 20% or more. Thereafter, prices in the month of October extended as high as $327 per ounce andhaving November prices fluctuating in the lower 300's. There are different factors associated with the supply and demand which havecaused prices to decrease. According to "The Economist," the price of gold reported to increase at $260 perounce in August. On the other hand, the sales of gold jewelry are increasing at a record pace, sincethe economy is strong, there are low gold prices, rising consumption rates, the emergenceof new discount chains, television shopping, and electronic chains (Haubrich, Joseph). In the first part of1998, the gold price ranged from $295. The price reduction started to impact the mine production byslowing the rate of manufacture growth by the end of 1998.
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