9 systemic factors that drive the gold price went up

There are at least nine of systemic factors that inshaAllah will continue to push gold prices up as I summarize the work of Dr. Martin Murenbeeld - Chief Economist of Dundee Wealth Economic as follows:


1. Global Fiscal and Monetary Reflation - ie countries in the world, each of which flooded the economy with debt is not simply to sink into bankruptcy.

2. Global Imbalances - which seems mighty dollar just because the currency of other countries to weaken. Dollar continues to weaken itself is actually a deficit trade balance continues. At least America will add its debt of U.S. $ 10 trillion in this decade.

3. Excessive Global Foreign Exchange Reserves - reserves of the world's countries will be exponential bloated - but stored in the value of paper currency whose value is shrinking - while the gold reserves of the world's countries will continue its decline which started thirty years ago (1980).

4. Attitudes to the Central Bank Gold - the world's central banks will tend to increase the IMF's gold reserves and selling only gold (and Indonesia, which sells 24% gold reserves at the end of 2006 then!). India's central bank such as buying the entire 200 tonnes of IMF gold, which sold late last year, while China's central bank actually managed to double its gold reserves from 395 tonnes to 1.054 tonnes of digits in the last decade.

5. Gold Is Not Bubble - gold price is the price of goods that are physically never loses its value in the history of human civilization. So the high price of gold is not a bubble or a bubble - that could explode and lose its value.

6. Mine Supply Is Flat - Sources of gold from the mine excavation is relatively unable to pursue growth in demand, during the last 20 years only adds to this new mineral supply as much as 25% or an average of just 1.25% per annum.

7. Investment Demand - because of fears of various other investment instruments, investment demand in gold will continue to increase globally. Since the beginning of 2009 world gold demand continues to increase - even in the second quarter of this year the request two times larger than the same period the previous year. This explains why so far this year the world gold price does not go down and down.

8. Commodity Price Cycle - since the year 1800 the world experienced commodity prices cycle up and down periods of each cycle could be one to several decades. So the current bull cycle could still be continued through the next few years.

9. Geopolitical Environment - Historically, gold prices are always high on the political and financial turmoil. World gold price peak like 1980 never happened in the year during the U.S. hostage crisis in Iran are almost triggered a major war. Coming years is still a lot of sources of global conflict that could explode anytime. After the decline of Iraq crisis, for example, there is still triggered the crisis in Afghanistan attack U.S. and allied troops into the country, the crisis triggered by the occupation of Palestinian Jewish soldiers who are not entitled to the area, the courage to continue to prepare Iran's nuclear program, as well as the threat of North Korea can be reckless at any time.

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