| Current Gold price USD/oz | Current Silver price USD/oz | ||
|---|---|---|---|
| 1253.20 (Ask) | 1252.20 (Bid) | 19.96 (Ask) | 19.94 (Bid) |
Gold demand is breaking previous records as investors turn into precious metals as a protection against bank failures and economic uncertainty.
As the following chart of World Gold Council shows, those holding hold should feel very satisfied with their choice.
Although Jewellery and industrial consumption have gone down pressured by the declining global economy, the gold demand for investment purposes almost double from 2007 to 2008.
Nobody is to say that 2009 will be a reprise of 2008, and I don't think any serious analyst will dare predict that during 2009 there will be another 70% increase in the demand of gold as investment. However, if the levels of demand keep rising, we could expect that gold prices break to lid and start moving up on the "no resistance" zone above US$ 1,000.
In the meantime, those of us holding gold, should be very happy as our investment paid off during the October – January crash and keeps retaining value even in the most difficult economic conditions.
