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How has the price of gold changed over the last 5 years?

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Introduction

What has influenced the price of gold over the last five years? In the following paper I shall be explaining and examining the factors that have influenced the price of gold over the last 5 years. Many factors have contributed to the price of gold rising from an average of $444.74 an ounce in 2005 to $1160.71 an ounce in 2010. Certain major factors are the main drive behind the price of gold, this ranges from the changes in the Chinese market to the importance of the value of the US Dollar. China and various other Asian markets are the main buyers of bullion and when in 2004 Chinese citizens were granted private ownership of precious metals, the price of gold rose worldwide. ...read more.

Middle

In Iraq, the high level of production from before the war has not yet been restored by the ineffective U.S. reconstruction programme. It is key to mention that over time developed parts of the world have gotten greener. People and policy have turned against mining in the developed world. So mining doesn't happen where it's not appreciated. All this coheres with an ever rising world population where the demand in investment of bullion has also amplified. With this demand the prices of gold are also affected by the natural desire to hoard gold. With many emerging market investors coming into perspective, it is worth considering global investors interest in buying gold. ...read more.

Conclusion

Bullion is bound to give them more value for their money than the low US dollar, and this increases the demand in gold. What if Gold's current trend continues over the next 5 years? It is predicted that gold prices could eventually hit $9,000 per ounce in 2015. Buying gold is the ultimate insurance policy against other currencies around the globe imploding, and the investment will pay off spectacular in years to come so a surge is expected. Supply is increasingly falling behind demand, as resources and mines diminish. The main thing to notice is that the reasons I have notified in this entire research, that are at fault for the influence on the price of gold, are significantly predicted to continue in the near future. ...read more.

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