Gold Market Information

Author: Ian Davis - Bullion Manager

Published: 4 May 2018

Last Updated: 9 Jul 2020

Synopsis

Gold has been ingrained in culture and wealth since its discovery. Used throughout the world as a base metal for coins, it is also a commodity and is used as jewellery. Its value has been relatively stable across history and it is often seen as a safe haven for investors looking to protect their wealth against inflation and failing economies. Read our blog on why you should invest in physical gold and silver here and keep up to date with market news and events which are responsible for driving gold prices.

Gold Metalor bars

Gold Demand & Supply

Gold Market Information

Demand Factors

Gold is predominantly used in 5 major areas which are jewellery, investment, technology (notably electronics) and within central banks. So, it experiences both industrial and investment demand. Since about 2008 the demand for gold has been increasing. If you view our live price charts, you will recognise the rises in 2011, 2019 and now to record all time gold prices. Many people are increasingly worried about the state of the financial system. Central banks are buying record amounts of gold whilst injecting cash via bond buying programs, both of which could be pre-recession behaviour. This increases both institutional and retail investment demand and has done for years. Jewellery demand is often inversely related to gold price as rising prices can slow growth. This happened in 2016 as a result of weak economic performance and policy changes in India. 

The World Gold Council provide good insight into how the market is evolving. You can subscribe to their mailing list to receive updates. The take home message is that the price of gold is currently at record levels on the back of the Coronavirus crisis, global tension and political instability. There appears to be no short supply of political and economic instability in the future, which would presumably only benefit the price of gold further. 

Gold Prices in Turbulent Times

Gold price is often a product of economic and political news and events. You can view the live price of gold here. If you are worried about the risks of wealth linked to a local economy, you should consider investing in gold. It has a more global value and is less affected by local economic downturns i.e. it is likely to hold its value even during financial ruin. 

Further Reading

You may wish to view all of our articles on our gold guide.

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