Is it critical that Gold is on high rates currently? Wow, People who are in the Jewellery field know it very well, what is the importance of Gold rates because high-value gemstones and diamonds are less effective if it is not used in Gold? (Not comparing Platinum here). The importance of Gold in India is very much higher than in other countries in the world. We know what the effect of a Gold rate hike is on our lives. The southern part of India is the most investor category in Gold. We (www.dfamousart.com) were observing Gold rates truly from the last and had an optimism that Gold rates would be on their top in the next year before the Federal Reserve (USA) decision on the Interest rates. We had tried to convey this message to our buyers at the same time to buy some Gold/ Jewellery products to avoid such gold rate hikes so the ultimate seller can get the most of the benefits. You know people don’t buy Gold bars (I should laugh here sorry) but they buy jewellery products instead. But the previous year's message to buy gold was for everyone (not only for buyers). Although awareness is important.
Vicky Carr (Presenter Buyer, only for reference from the LinkedIn post) my friend in her post tried to show the possible reasons but we as a business holder have different insights. We believe in future security by saving through real assets (not depreciating easily) like investing in Metals, obviously precious metals.
Let the people know who are the major Mines which contribute in Gold explorations (Ref from CHATGPT):
1. China:
• Zijin Mining Group operates several major gold mines, including the Zijinshan Gold Mine and the Fujian Zijinshan Cu-Au Mine.
2. Australia:
• Super Pit Gold Mine in Western Australia is one of the largest open-pit gold mines globally.
• Boddington Gold Mine in Western Australia is another significant contributor.
3. Russia:
• Polyus Gold International operates the Olimpiada, Blagodatnoye, and Natalka gold mines, among others.
4. United States:
• Nevada is a major gold-producing state with mines such as Carlin, Cortez, and Goldstrike.
• The Muruntau Gold Mine in Uzbekistan is one of the largest open-pit gold mines in the world.
5. Canada:
• Red Lake Gold Mine in Ontario is a prominent gold producer.
• Canadian Malartic in Quebec is another significant mine.
6. South Africa:
• Mponeng and Driefontein mines are among the top gold producers in South Africa.
7. Peru:
• Yanacocha is one of the largest gold mines in South America, located in northern Peru.
8. Ghana:
• Tarkwa and Obuasi are key gold mines in Ghana, a country with a rich history of gold production.
9. Indonesia:
• Grasberg in Papua is one of the world's largest gold and copper mines.
10. Papua New Guinea:
• Lihir Gold Mine is a significant gold producer in the Pacific region.
(Note: The ranking may be different)
Current reason of Gold Rate hikes:
1. Economic Uncertainty: Gold is often seen as a safe-haven asset during times of economic uncertainty or market volatility. If there are concerns about economic stability or geopolitical tensions, investors may turn to gold as a store of value.
2. Inflation: Gold is considered a hedge against inflation. When inflation rates rise, the purchasing power of currencies tends to decrease, leading investors to seek assets that can retain value, such as gold.
3. Interest Rates: Changes in interest rates can impact gold prices. When interest rates are low, the opportunity cost of holding gold (which doesn't yield interest or dividends) is lower, making it more attractive to investors.
4. Currency Strength: The strength or weakness of major currencies, especially the U.S. dollar, can influence gold prices. A weaker dollar often leads to higher gold prices, as gold becomes cheaper for holders of other currencies.
5. Central Bank Policies: Actions and statements by major central banks can impact gold prices. For example, if central banks increase their gold reserves, it can be seen as a positive signal for the precious metal.
6. Supply and Demand Dynamics: Changes in the supply and demand for gold, including mining output, jewelry demand, and industrial use, can affect prices.
The conclusion: We still have a chance, If you see any dip in Gold prices one can invest something to make the future bright, this kind of opportunity doesn't come in years. We are very sure that there will be a dip in the Gold prices in April-24 but after that, it will be hard to asses any lower situation in Gold prices. All know that this is limited and we can only get benefits if we take action quickly. Indians have a lot of Gold already available in their houses. The rest of the world needs to be quick now.
Deepak Sharma
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