Purchasing power by Gold

Is it the time to invest in gold or not?

With orientation index price of gold towards stability after the decline witnessed during the last period is estimated at about $ 130 an ounce in the price of 1800 USD/Troy an oonce to 1668 USD/Troy an oonce is reflected on the recovery of the domestic market sales, according to local traders, which has seen exponential growth during the current period .. The price of 24-about 196 riyals while the caliber of 22 to 179 and 21-carat about 171 riyals, while the total price of 18 carat about 147 riyals and the price of the ounce 1668 riyals.

And traders expect to see the coming period, further gains for gold, confirms the fact that market liquidity will turn into a safe haven precious metal and what drives investors to increase their assets in gold to protect their wealth, especially with that enjoyed by gold from the proven ability to mitigate the risks.

And likely that investors continue their search for a safe haven shielding them element of uncertainty in global economic conditions and confirmed that with the beginning of the release of positive news for the euro area and improve the European currency with the success of the plan to support Greece and the agreement of creditors to restructure debt prices have recovered gold with the recovery of European stocks.
A report issued by the World Gold Council recently found that gold was the winner of the few assets around the world in 2011 after recording a rise of 9% against the dollar resident has a U.S. dollar.

Emerging markets

He added that the yellow metal ended trading last year, scoring 1531 USD/Troy an oonce on the rise for the eleventh year in a row while the prices currently above the level of $ 1600 an ounce. He explained that the yellow metal was in recognition of emerging market countries more than developed markets, especially after the high volatility that hit the euro and the dollar unlike some other foreign currencies.

He noted that the concerns of European debt precipitated gold prices jumped from around the world more than 11% within the economies of some Asian countries such as China, India and Japan.
The report indicated that there is a correlation directly between exchange rates and the performance of gold which saw the countries that rose in the currency exchange increase in the price of yellow metal hitting for example, Japanese yen, the lira, Turkish and Indian rupee, referring to the high price of gold in those countries significantly compared with other markets Komrica North and West Europe.
He explained that when the currency exchange rate rises to a developing country, the inflation in that country over and accompanied him to the top gold prices unlike what is happening in America and Europe from the fall in the value of the dollar and the euro due to the decline in the price of gold also.

The report said that in the period between January 2011 and August 2011, especially during the past summer has seen an unprecedented gold rises followed by the intensification of the financial crisis after the Greek and the spread of infection to some neighboring countries and the fear of bankruptcy.

For his part, denied Mahmoud Said economist effects of what was going through the region on gold prices .. He said: “This will not affect events on the world market for gold, pointing to the possibility of impact on the countries that are related to events in the weak purchasing power of consumers preferring to maintain the liquidity available to them in light of these disorders, referring to lower sales of their respective markets.

He added that influence the price of gold comes from the euro area, which directly affect the world gold prices and gold prices on the domestic market linked to world prices and that the additions to the price lies in the workmanship and customs vary from one piece to another, which leads to a disparity in prices.

Market recovery

Optimistic and happy recovery of the markets during the coming period, noting that the current price of gold reached the lowest level where it experienced a decline estimated at about $ 100 per ounce during the week expected to witness a gradual price rise during 2012.

He explained that the current situation may not be compliant to the nature of the relationship of gold in dollars that have characterized the situation reverse in recent months “and the high value of the dollar requires lower gold and this may not be clear with the current prices because of other reasons affecting the gold than the value of the dollar,” noting that liquidity markets still take the gold from the first accepted “and no matter how down prices remains a top investment returns than bank interest.

For his part, said Nayef Qu’aiti The current period is witnessing a high demand for gold, pointing out that 18 carat topping the sales of what is characterized by the formation of many unique and followed by 21-carat pointing out that girls accept a 18 carat, white gold, which is characterized by Bcecchelath and Modellath many that meet the desires especially that 18 K is characterized by the multiplicity of choices, while women prefer yellow gold, while some prefer to go towards buying in order to save long-term as it is haven a secure investment with preferably some consumers buy gold 24 carat because of its luster, and their desire to go about saving because the rate of gold for 100%, followed by caliber 21 in savings while one in 18 and the restaurant shall be Balvsos always go to buy it for decoration.

And the jewelry of choice for clients vast western Qu’aiti as diverse and that the country would prefer new and innovative to inform them of all that is new in the world of gold and jewelry, preferring to purchase and the acquisition of all that is modern and new in the world is full of innovation and formations unique and new every day while you prefer some of the communities of Gold “Gentlemen,” yellow and every community has driven in the procurement process.

The report predicted that demand for gold continues to rise through 2012 and all Classes of investment and industrial demand backed up by central banks around the world to demand coming from the gold jewelery market in emerging markets.