Although many investors see gold as a more solid investment than currencies, (which are more likely to feel the effects of economic troubles) gold is not bulletproof.
Recently the price of gold has softened slightly due to three factors:
The strengthening of the US dollar, slower than expected economic growth in China and a potential decline in gold demand in India.
EzyCash Gold Buyers keeps a close eye on the price of gold so they can give you a top cash price for your unwanted gold. Bring in broken gold, scrap gold, gold jewellery and more to their store in Panmure, Auckland. With their knowledge of the price of gold and the gold market, they can give you an expert valuation on your gold and a top cash price.
Despite the US experiencing high levels of debt and a generally gloomy economic outlook, the dollar continues to strengthen. This is partly due to a slowdown in China’s economic growth which in turn has put commodity prices (such as the price of gold) under pressure. And when the price of gold goes down, the US dollar often goes up, and vice versa.
China is the world’s second largest consumer of gold. Earlier this year the Chinese government downgraded it’s growth expectations to about 7.5% and with the economy slowing down, this will decrease China’s ability to buy gold.
India is the only country that tops China in its demand for physical gold but economic factors also look to curb their population’s desire for gold. They have recently proposed to lift gold import duties to 4%. This will no doubt have an impact on the demand for gold jewellery if the import tax on gold is lifted.
At time of writing the price of gold was hovering at around US$1648 per troy ounce.
Things are looking positive for the silver market with silver retailers reporting a consistent increase in the price of silver year after year. In fact, jewellers in the US had an increase of 25% in sales of silver jewellery in 2011.
Bring in your unwanted gold or silver to EzyCash Gold Buyers in Panmure, Auckland and help to pay off debt when you receive a top cash price.
EzyCash Gold Buyers
Phone: (09) 570 1511
Fax: (09) 570 1527
30B Jellicoe Road
Panmure, Auckland East