GOLD PRICES.

 GOLD WILL HIT US $ 1600, AN OUNCE.  

                                                                                                                                                                                                                                                                                                                                                                                                                 

                                                                                  

It is History.  The price of gold bullion in the year 1980, had surged to US $ 873 an ounce. It was the record highest.  The record was broken, and bullion had hit $1600 an ounce mark during 2013 thereafter it had fluctuated and steadied at 1200 $ an ounce.

Some investors buy gold, to preserve their purchasing power. It is speculation. Reliable news agency reports that gold bullion may rise to its highest level in the near future. 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 jewelers therefore have stocked up gold stock to meet with the rising demand. World gold prices may rise in the next coming months.  It will boost its price as the hedge fund managers and other large speculators have increased their net long position by  5%.

"There is 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 are declining. The investors  therefore purchase more gold as a hedge against declining prices of world currencies.  Gold may still gain in future on speculation demand which may exceed 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 aging 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.