The Gold Economy

Gold declined by a shade over 11 % during the month, as investors were spooked by a raft of bearish news.

First came US employment figures that shocked the market, giving concern that its economy has stalled.

Then, the market was hit by debt worries in Europe, and a lack of clarity shown by European leaders in respect of Eurozone sovereign debt concerns.

IMF downgrades to its global growth forecasts, its assertion that problems in the financial system (banks, governmental, and personal) are more dangerous now than they were in 2008, pushed all investors to… Continue reading

Gold is known to have many industrial uses besides its investment value as a hedge against inflation. Data provided by the World Gold Council indicates that the industrial applications of gold accounted for about 12 per cent of the world market demand for gold which translates to an average of about 434tonnes of gold per year from 2005 and 2009. Gold is known to be useful in the production of electronics and it is commonly applicable in medicine, dentistry, and nanotechnology.

Uses of gold in electronics: Electronics is the area of technology where… Continue reading

Gold may inch up in price gain for a second day as investors who are worried about the debt burden hanging over Europe and possible default by Greece rush to find safe havens in precious metals. News reports from Melbourne, Australia shows that at about 10.00a.m local time on September 14, gold had gained about 0.2% to reach $1,837.43 per ounce before settling for $1,836.97 at that early morning trading session.

The debt burden is weighing heavily on Europe as ‘’uncertainty pervades the entire European market’’ as noted by Natalie Robertson who is a commodity market… Continue reading

Market concerns over the perceived weakness in the value of the US dollar were reported to be responsible for a moderate gain in the prices of gold futures on the COMEX division of the New York Mercantile Exchange as the price of gold ended slightly higher on September 13 as investors considered investment in gold as a safe haven and a better alternative.  Gold for December delivery gained $16.8 to reach $1,830.1 on the exchange which is about 0.9 per cent price appreciation.

Unconfirmed reports states that German and French authorities are working to ease the tension… Continue reading