5 Factors Affecting Gold Price | Thangamayil Jewellery
5 Factors Affecting Gold Price | Thangamayil Jewellery India is the world’s largest gold consumer. While demand for gold has been seeing a downward trend in the global economy for the past 5 years, the Indian love saga with the yellow metal is in full vigour. In 2014, India consumed almost 842 tonnes of gold – more than any other country, and this year too, in the third quarter of 2015, we consumed around 225 tonnes of gold. Gold is still a very important and valuable asset for Indians that convey prosperity and provides security. The lowering prices in the last five years have only spurred the demand further. So what exactly affects the price of gold? 1. Economic Crises and Currency Fluctuations In India, Gold is seen as a hedge against economic uncertainty and fluctuations. People fall back on it since it’s a highly liquid asset, second only to hard cash. In conditions of economic instability, other assets become harder to liquidize and their worth too can fluctua...