Gold prices above $ 1600

What is gold?

Gold is a dense, soft, shiny, malleable and ductile metal and is a chemical element with the symbol Au and atomic number 79

Why gold prices always go up? Do we have any specific reason for it?

Reason are very simple, it takes to our school of business. When demand is high price will increase,when demand is low price is low. Same rule applies to the supply too.

Source of Demand for Gold

Gold has seen consistent demand thought the History. Gold 


became a part of every human culture. Its brilliance, natural


 beauty, and luster, and its great malleability and resistance 


to tarnish made it enjoyable to work and play with. The 


following are the sources of demand for Gold.

1) Jewelry fabrication: The largest source of demand is the jewelry industry. Gold’s work-ability, unique beauty, and universal appeal make this rare precious metal the favorite of jewelers all over the world.

2)Industrial Applications:   


Besides jewelry, gold has many 


applications in a variety of industries including aerospace,   


medicine, electronics and dentistry. The electronics industry needs 


gold for the manufacture of computers, telephones, televisions, and 


other equipment. Gold's unique properties provide superior 


electrical conducting qualities and corrosion resistance, which are 


required in the manufacture of sophisticated electronic circuitry. 

3)Governments and central banks: The third source of gold demand 


is governments and central banks that buy gold to increase their 


official reserves.

4) Private investors: Finally, there are private investors. Depending 


upon market circumstances, the investment component of demand 


can vary substantially from year to year.

Article source: Compliments of the World Gold Council

Should I invest in Gold?

Below charts mentions the movement of gold prices over a period 


of 40 years. Gold is always treated as a hedge against inflation. 


Every individual should have at least 30% of their portfolio worth 


in gold. Due to high demand and less supply the price has always 


moved upwards. Charts clears states the exponential growth of gold


over the years. Please check with your financial expert before 


making any investments in gold.

Types of gold available in the market

Gold jewelry: This is oldest method of accumulating gold. We can 


gold in the form Jewelry and use it a custom way for functions and 


festivals

   

    Gold Bars: We can also accumulate gold 


    bars. Its available in most of the gold jewelry 
  
    outlets

    GoldBullions:We can also accumulate bullion. 

   Gold ETF or Mutual funds: This is best way to accumulate gold over 

   
    a period of time. It gives you the flexibility of liquidity.

Note:You can choose anyone of the ways according to your risk profile and the amount of capital can deployed.Please check with Certified financial expert before making any investments.