Gold has never been more Precious

The gold has never been more valuable : 1500 dollars per ounce: the reasons for a historical record.The yellow metal rose on 20 April to a record high 1500.70 dollars an ounce. Even If the markets got carried away since the beginning of the year, the upward trend is more persistent It dates back a decade back at least. The real upward trend started in April 2001 after an ounce reached a low of 253.85 dollars. "Among the reasons for this growth: the awakening of the emerging countries. "The central banks of those countries are buying gold to make up the standard ratio of gold in their reserves vis-à-vis Western countries," and especially the US Dollar. China (1.8% of its reserves with 1 000 tonnes) and India (8.5% with 550 tonnes) in recent years have been the biggest buyers of gold in the world. But they are far from the ratios of the United States (75% with 8 100 tonnes), Germany (71% with 3 400 tonnes) and Italy and France (68% with about 2 400 tonnes), according to figures from the World Gold Council dated January. It is also the demand from emerging countries which pushed on the rise the prices of other commodities , awakening and fears of inflation. Investors are turning to the safe haven that is gold, but also to Silver, which reached 40 Dollars an ounce in April , its highest level since February 1980. The fear of inflation also feeds from the risks associated with crises in the Arab world and the Japanese drama. As the peak of the euro, which traded until last month $ 1.43, it also encourages the purchase of gold, denominated in U.S. currency. Demand from emerging markets, falling dollar, the specter of inflation, geopolitical instability ... these causes in 2008 pushed gold to a record level ... at 850 dollars! Still far from the record of 1980, to 825 dollars, equivalent to about 2500 dollars, taking into account inflation. And analysts still do not see the trend reversing. Especially since the renewed concern about the sovereign debt of countries in the euro area - after Greece and Ireland, Portugal - also pushes the purchase of gold, less risky in times of volatility. Hedge funds also mingle more in the battle. As for producers, they are pleased. "The higher the gold price is , the more we can raise money on the stock market, enhance our investment capabilities and discover deposits, said a Gold miner based in Africa What we discovered in the past and we did not pay much attention to before , today it becomes much more interesting! "



Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)