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| Global Situation Economic |
About 80 percent of the total supply of gold used jewelry industry. Consumption of jewelry is a great influence on the demand side.
As economic conditions improved, the need for jewelry tends to rise. However, from the statistical data visible demand for jewelery is more sensitive to fluctuations in gold prices than the increase in economic conditions.
The fall of the level of jewelery demand during recessions in 1982-1983 mainly due to rising gold prices simultaneously. The fall of the level of jewelery demand in times of recession the early 90's more in line with the above, at the time the gold price to go down.
The uncertain economic situation could lead to high inflation. Gold is used as a hedge against inflation. This benefit has been felt for a long time investor. With gold, investors got a perfect protection against declining purchasing power. As the year 1978-1980 gold prices are booming, while inflation in the U.S. rose from 4 percent to 14 percent, gold prices tripled.
As economic conditions improved, the need for jewelry tends to rise. However, from the statistical data visible demand for jewelery is more sensitive to fluctuations in gold prices than the increase in economic conditions.
The fall of the level of jewelery demand during recessions in 1982-1983 mainly due to rising gold prices simultaneously. The fall of the level of jewelery demand in times of recession the early 90's more in line with the above, at the time the gold price to go down.
The uncertain economic situation could lead to high inflation. Gold is used as a hedge against inflation. This benefit has been felt for a long time investor. With gold, investors got a perfect protection against declining purchasing power. As the year 1978-1980 gold prices are booming, while inflation in the U.S. rose from 4 percent to 14 percent, gold prices tripled.
