About Gold
Demand for gold falls into three main categories, with the jewellery market being the largest. The second is industry, which is dominated by the electronics sector. The third category is investment. As an investment tool, gold is often viewed as a good hedge against weak economic conditions, inflation and global unrest.
Market Conditions
According to analysts, the price of gold will likely trade in a range of $800-$1,000 for the next two years. In their view the price will be required to reverse the flat-to-declining global mine production levels that have been evident since 2002. Also with the lack of new large gold discoveries in recent years and the resulting shift to lesser explored areas that often involve more risk, investors will demand higher returns. With the depreciation of the U.S. dollar, gold has become an attractive asset to investors looking for a safe haven.
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