Gold
标的
Factors
Economic forces
1 Psychological Forces
Supply and demand
Demands
1. Bullion used for hoarding and investment
2. Fabricated products taking a wide variety of forms
Fabrication demand for gold is estimated to have been 82.6 million ounces in 2005. 2004-80.9; 2001-91.2; 1998-104.6; - Jewelry(70%) Can be taken as an investment, so the demand is not price sensitive and can even rise in line with price increases. - Industry(23%) Electronics Circuitry - Medicine Dental use (7%);
Demand Logic
Substituations of other metal
War or the threat of war increases gold demand
Gold demand reflect a country's monetary situation.
Improvements in the monetary situation would likely weaken demand for gold.
- Wide fluctuations in foreign exchange rates and unstable financial instituations drive gold demand by stir-ring distrust of paper currencyie
- Uncontrolled inflation
- Fed by higher oil prices or a growing balance of payment deficits would spur demand for gold