More and more people are actively buying gold today; this habit started about 10 years ago when the bull market for gold started attracting attention.
Gold Prices
It is not surprising though that more people should favor gold purchases now more than before as it can be observed that gold prices rose fourfold compared to the US dollar during 2001 to 2010. Gold prices were fluctuating madly earlier in the late 1960s until a new high of $850 an ounce was recorded in the beginning of 1980. Gold prices took a down turn between 1999 and 2001 to a low of $252.90 per ounce. A new high was recorded on 3 January 2008 at $865.35 an ounce which was quickly overwhelmed by a higher record of $1023.50 per ounce on 17 March 2008. It went beyond $1200 per ounce in December 2009 and continued its upward trend through 2010 with new highs along the way, especially with the European debt crisis emergence. Many investors quickly surged to purchase gold as an alternative investment.
Silver Prices
Similarly for silver, its price went upwards during 2000 to 2010, caused by a rise in demand for the metal’s characteristic value in the industry. Many electrical appliances as well as medical products were demanding a lot of silver in their production. The high demand of silver overshadowed the small rose in mining activities for this metal during the twentieth century. The ailing global economy pushed the price of silver by 5% in the year 2002 to an average of $4.60 per ounce. It rose 5% again in 2003 before springing to a dramatic high of 36% in 2004 to close at $66.6 per oz. It continued to rise 10% in the year 2005 followed by a 58% increase in 2006. It averaged to $13.38 per ounce in 2007 before dropping in 2008; but it managed to average off to $14.67 per ounce in 2009.
Universal investment
Gold is now favored as the universal currency after the many negative economic incidents so much so that even global central banks are strong contenders to buy gold coins. The largest one off gold purchase in 30 years was conducted in October 2009 by the Indian Central Bank with a purchase of 200 tonnes from IMF.
Gold is seen as an alternative investment that is defensive against the poor economy; it is considered a safe haven asset as well as the best way to preserve wealth in this trying and uncertain economy
Gold Prices
It is not surprising though that more people should favor gold purchases now more than before as it can be observed that gold prices rose fourfold compared to the US dollar during 2001 to 2010. Gold prices were fluctuating madly earlier in the late 1960s until a new high of $850 an ounce was recorded in the beginning of 1980. Gold prices took a down turn between 1999 and 2001 to a low of $252.90 per ounce. A new high was recorded on 3 January 2008 at $865.35 an ounce which was quickly overwhelmed by a higher record of $1023.50 per ounce on 17 March 2008. It went beyond $1200 per ounce in December 2009 and continued its upward trend through 2010 with new highs along the way, especially with the European debt crisis emergence. Many investors quickly surged to purchase gold as an alternative investment.
Silver Prices
Similarly for silver, its price went upwards during 2000 to 2010, caused by a rise in demand for the metal’s characteristic value in the industry. Many electrical appliances as well as medical products were demanding a lot of silver in their production. The high demand of silver overshadowed the small rose in mining activities for this metal during the twentieth century. The ailing global economy pushed the price of silver by 5% in the year 2002 to an average of $4.60 per ounce. It rose 5% again in 2003 before springing to a dramatic high of 36% in 2004 to close at $66.6 per oz. It continued to rise 10% in the year 2005 followed by a 58% increase in 2006. It averaged to $13.38 per ounce in 2007 before dropping in 2008; but it managed to average off to $14.67 per ounce in 2009.
Universal investment
Gold is now favored as the universal currency after the many negative economic incidents so much so that even global central banks are strong contenders to buy gold coins. The largest one off gold purchase in 30 years was conducted in October 2009 by the Indian Central Bank with a purchase of 200 tonnes from IMF.
Gold is seen as an alternative investment that is defensive against the poor economy; it is considered a safe haven asset as well as the best way to preserve wealth in this trying and uncertain economy
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