GOLD PRICES ARE FALLING.

 GOLD WILL HIT AS LOW AS US $ 800, AN OUNCE.  

                                                                                                                                                                                                                                                                                                                                                                                                                 

                                                                                  

It is History.  The price of gold bullion in the year 1980, had surged from US $ 100 an ounce to US $ 873 an ounce. It was the record highest.  The record was broken again, and bullion had hit $1800 an ounce mark. Presently it is trading at US $ 1250 an ounce.

It appears as of now that the purpose of high gold prices has served

Its purpose.  USA got all the black money of world countries converted into US Treasury

Bonds by means of sheer blackmail, threats and force. Now it is in their interest to lower gold prices.  It may go as low as US $ 800 an ounce.

Some investors buy gold, to preserve their purchasing power. It is speculation. Reliable news agency reports that gold bullion rose to its highest level in the last few years. At the beginning of the 21st century gold price was around 250$ an ounce, and it appeared that it would still go high.   The tendency of the investors is to buy Bullion as a safeguard against inflation.  The public demand for purchase of jewellery is seen rising.  The jewellers therefore have stocked up gold stock to meet with the rising demand. World gold prices rose in the past few months.  It had boost its price as the hedge fund managers and other large speculators increased their net long position by 5%.

"There was pressure to raise gold price to from all quarters including some last minute people jumping on the bandwagon" said New York Stock Exchange spokesperson.  The world currencies were declining. The investors  therefore purchased more gold as a hedge against declining prices of world currencies.  Gold gained on speculation demand which  exceeded the production from gold mining companies, all around the world.

Our country is in the danger of losing its position in the rank of gold producing countries. Our gold finds, depleted resources in mining gold within the country are due to lack of exploration. The last decade was a decade of lost exploration. Unless new discoveries are made, reserves for gold under mining would be depleted at the end of this decade. This will mean closure of smelters and refineries and the havoc it will reap on our economy.  To reverse this sorry state of affairs and catch-up internal gold production, it is necessary to form a cabinet rank ministry for gold.  We have vast highly prospective geology much of which is still largely unexplored.  However the need for increased exploration is not the only challenge that has threatened the gold mining process.  The ageing population and shortage of skilled workers are also worries and a problem.

It is reported that world's largest hoarders of gold are a few parties from India. The princely states are foremost among them.

It is learnt from reliable sources that pressure to auction 500 tons of gold is mounting on the IMF.  India purchased 200 tons of it. The UNO at the behest of Uncle Sam wants funds to help the third world nations for natural calamities.  There is chance for fluctuations in the prices of gold. Economists hold different views on such an eventuality.  Some believe that the gold prices would have no or at the most nominal effect. Some say that in the past, when such auctions were held, it gave rise to higher prices. It seems a gamble.