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Gold

Author

Listed:
  • Dana Ghiţac

Abstract

The gold market has become overwhelmingly influenced by the demand or supply it generates hundreds of millions of individual investors worldwide when buying or selling yellow metal. This segment of demand, which cannot be quantified in statistics only indirectly, has caused over time the occurrence of cycles of abnormalities in which the rise in the price of gold causes the interest and demand to increase in such a way that it causes new increases, which in turn, attract even more investors. Such a vicious circle is interrupted when the influence of other factors (economic, financial, political) damages the results of the investment in gold. At the moment when the evolution of quotations becomes inadequate to expectations, investors leave the market in favor of other commodities, which forces artificial depreciation.

Suggested Citation

  • Dana Ghiţac, 2017. "Gold," Conjunctura economiei mondiale / World Economic Studies, Institute for World Economy, Romanian Academy, pages 345-351.
  • Handle: RePEc:iem:conjun:y:2017:p:345-351
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    Keywords

    gold; market; price; supply; demand; investment;
    All these keywords.

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