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Sunday 24.09.2017 | Name days: Agris, Agrita
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Gold prices reduce by an average of 4%-5%

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Аuthor: PantherMedia/SCANPIXThe beginning of 2013 was marked by a new trend – the traditionally increasing price of precious metals turned the other way around, the experts of Goldinvest Asset Management comment the situation.

Q1 had prices for gold “suffer” the most – prices had reduced by an average of 4% – 5% in USD and EUR. The price of silver, on the other hand, reduced the most in EUR currency – by 5.15%. USD price reduction was only 1.92%, according to the latest market data of Goldinvest Asset Management.

“There is not single rational explanation for the precious metal price fall. Gold prices usually stabilize when the positions of USD become weak. This time, however, the situation does not follow this trend. The reduction of USD in relation to EUR did not affect the prices of precious metals. It seems that the large capital flow was diverted to stock markets. This reduced investments in other sectors, including that of precious metals”, – Chairman of Goldivest Asset Management Peteris Avotins explains.

According to Avotins, it is possible that the rumours about the plans of the U.S. Federal Reserve System to change the currently employed quantitative money softening policy, which involves the printing of more money, could have had an impact. If the FRS stops this policy, it will become a sign for gold prices to reduce, because it will no longer serve as a sanctuary for capital, the expert says.

Representatives of the company note that there has been a notable U.S. Stock market increase. This was reflected in the Dow Jones Industrial Average value. The lowest price was noted in the beginning of the year. This was followed by an increase that grew by 10.03% in Q1m reaching an average price near $14 000.

“In spite of the rumours about FRS possible plan to change its policy, the leading central banks of the world continue their quantitative softening policies, releasing more money into circulation and increasing liquidity and creating potential inflation risks for the future”, – Avotins said.

It is noted that the interest for investments in precious metals has been noted in Latvia and other Baltic countries, as well as Russia in spite of the general price reduction. The demand for gold bars and coins exceeds the rates of previous months by an average of 15-20%, according to Goldinvest Asset Management.

“The upcoming transition to Euro is one of the main motivational factors for Latvians to perform investments in precious metals. Clients hope to protect themselves from price changes in currency exchange losses by buying gold”, – Avotins explains.

Ref: 103.109.109.7120


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  1. JPR says:

    At these prices, I am hoarding gold by the kilo.

    Thumb up 0 Thumb down 0

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