Trends in the Gold and Precious Metals Marketplace
The current rise in the precious metal trade has been due to the volatile economic situations that are being witnessed across the globe. The drop in the value of fiat currency via Central Bank money printing has caused people all over the world to turn towards precious metals to safe guard their assets. People around the world have come to realize that precious metals do not lose value like printed paper money. The most common reason behind Central Bank money printing to finance government deficit spending as governments don’t want to ethically raise taxes to finance their spending. Instead they choose to borrow and print which is less noticeable to the average voter.
The price of precious metals has such as gold and silver have been holding on to their intrinsic value for nearly a hundred years. It is only a matter of time before printed paper money loses its entire value and be deemed worthless if the current trend by governments of most countries continues to print money in a mindless manner. People have gone to the extent of salvaging gold from scrap, as gold buyers and gold refiners pay “good money” in the exchange trade of cash for gold. In India for instance buying gold jewellery is a predominant exercise by the middle and upper class citizens. The gold trade in Australia has also shown a sharp increase in the number of cash for gold dealers to sell your gold with, and selling silver for a good price is now just as easy as gold. Gold jewellery is not being purchased for cosmetic purposes such as it was before the global economic crisis made an appearance that sent the economies of most countries spiralling into oblivion. Gold coins and silver coins have also shown drastic increases in the numismatic values.
According to a representative with Australia’s largest gold buyers firms, the upbeat trend of the current precious metal industry is not seeming to be taking a back seat to printed paper money anytime soon. The trend, according to analysts will continue well into the year 2018. It is likely to only slow down if the current random ‘creation of printing paper money is put to stop”. However, he pointed out that the prices of gold will stabilize by the end of the year as the gold bullion market is being starved of its supplies due to the low production rate that is being face by most mining corporations. Another thing to note is when will a government stop spending or running deficits? Well, we all know the answer to this one, so therefore continue holding onto your gold.
Again and again paper money has failed to prove itself and yet governments still tend to lean towards it in fear of mismanagement. It is the only way they are able to cover deviancies’ in their administration of the country. The use of gold as standard money would deprive governments of this ace card they possess.