All those who have invested in gold are delighted and counting there profits with every passing day (with gold touching new highs every day) but the sad part is for the thousands of people who are into jewelry making business. With gold touching it all time high, the demand of jewellery has drastically fallen giving a tougher time to the Artisans who were earlier employed with the jewelry shops are now at the mercy of market realties
With each rising day the loyalty of gold lovers is getting tilted to pure gold bars as compared to ornaments & jewellery, artisans believe that this is a temporary phase and people will come back to what they like the most (jewelleries) as soon as the prices get stabilized.
But there are no concrete reasons of gold pricing hitting back to price of (10000- 12000 per 10 gms) instead a price of 20000 per 10 gms seems to have concrete reasons.
China is emerging as super power in Gold, it have gold reserves of 1054 tonnes as on April, 2009, 1200 odd mines and still striving to increase the production. This move might be to safeguard itself from $ fluctuation and for diversification of the reserves.
Recently India's central bank bought 200 metric tons of gold from the International Monetary Fund (IMF) last month. This is again a move to diversify its foreign-exchange reserves.
With two major consumer countries (known to me) opting for God to diversify there foreign exchange reserves I believe more countries will join this rally and demand for gold will be there, so the question of price coming down is ruled out.
Apart from this India is an importer of gold, whatever we produce is not sufficient to fulfill our demand, so gold import will be there and will provide more support to high price of gold.
With each rising day the loyalty of gold lovers is getting tilted to pure gold bars as compared to ornaments & jewellery, artisans believe that this is a temporary phase and people will come back to what they like the most (jewelleries) as soon as the prices get stabilized.
But there are no concrete reasons of gold pricing hitting back to price of (10000- 12000 per 10 gms) instead a price of 20000 per 10 gms seems to have concrete reasons.
China is emerging as super power in Gold, it have gold reserves of 1054 tonnes as on April, 2009, 1200 odd mines and still striving to increase the production. This move might be to safeguard itself from $ fluctuation and for diversification of the reserves.
Recently India's central bank bought 200 metric tons of gold from the International Monetary Fund (IMF) last month. This is again a move to diversify its foreign-exchange reserves.
With two major consumer countries (known to me) opting for God to diversify there foreign exchange reserves I believe more countries will join this rally and demand for gold will be there, so the question of price coming down is ruled out.
Apart from this India is an importer of gold, whatever we produce is not sufficient to fulfill our demand, so gold import will be there and will provide more support to high price of gold.
image source: http://www.proactiveinvestors.co.uk/
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