Gold is a yellow metal which is considered to be the best and safest investment since years. It is extracted from the Earth’s core. Gold is considered to be the safest investment. It takes so much of process to refine gold after it gets extracted from earth’s core. No matter if there is inflation or deflation going on in a country, gold prices’ investments are always stable.
Reasons for gold price hike:
1. Ongoing war situations - There are a lot of geopolitical tensions and war like situations going on between many nations, for example- Russia and Ukraine, Israel and Gaza.
2. War predictions – There are many forecasts which are coming out related to upcoming world war because of which gold is getting impacted a lot.
3. Supply and Demand – Gold prices are also getting soared due to the demand by Indians because Indians have emotional attachment with gold as they gift gold to their daughters and sons on their wedding. Moreover, near the wedding season, December to February, gold prices would always be on hiked.
4. Emotional Attachment – There is an emotional relationship between the yellow metal and Indian people.
What is the main reason for this emotional attachment?
Let’s take you back in medieval period, Emperors used to wear heavy gold ornaments. Moreover, they used to gift this expensive metal on special occasions for, wedding gifts, awards.
How Wars
impact the gold prices?
To make weapons, armories, there is a huge need of gold by the defense companies. This is one of the major reasons that gold prices are spiking.
Comments
Post a Comment