Gold Prices relative to Chinese and Indian buying trends
Fluctuations in global Gold Prices are closely tied to buying trends in the world's two largest markets, China and India.
Tht is according to Michael Power, investment strategist for Investec, the banking and asset management firm with offices in London, South Africa and Australia, who believes that the popularity of the precious metal in these two countries makes the domestic buyers' habits of particular importance, according to Mineweb.com.
He told the news provider: "Today the two most important currencies in understanding the price of gold are the renminbi and the rupee because between them, [China and India] are now consuming well over 40% of annual production and I think you have to look at the price through the eyes of the people that are buying the stuff."
Giving an insight into when might be a good time to Invest in Gold, regardless of Chinese and Indian purchase trends, is Avi Tiomkin, chief strategist at Tigris.
He told Forbes: "People will tell you that gold is an inflation hedge because of the 1970s. Gold performs even better in deflationary periods.
"Gold performs great in both inflation and deflation, when people lose confidence in governments and central banks."
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