As Gold Dashes Past $1,700, $2,000/oz Viewed As A PossibilityAugust 10, 11
A continued concern of the global economy is giving rise to an understanding that gold may reach $2,000.
"The world’s capital markets are increasingly concerned that the global economy is heading towards another downturn only three years since the failure of Lehman Brothers and the onset of recession in 32 out of 34 OECD economies," said Marcus Grubb, managing director of investment at the World Gold Council.
"Investors are concerned at the medium term viability of sovereign debt levels and the ability of many leading western Governments to service, refinance and reduce debt," he added.
According to Grubb, some European countries’ debt burdens are potentially unserviceable.
Rising gold prices are expected to have a strong impact on jewelry sales. Many jewelry buyers purchase gold jewelry as a way to store value, a common trend all across
At the just concluded IIJS fair in
"Against this backdrop, together with strong Asian gold demand and continued purchasing by central banks, gold continues to demonstrate its attributes as a hedge against credit risk, currency risk and inflation/deflation risk," Grubb stated.
The price of gold kept rising while platinum lost ground in the past month