Price of Gold $1600 - New Record

The Cash 4 Gold blog recently reported a high price of gold last week, and hinted with a prediction of a new gold price record that would break the $1500’s gold price range. Today, that estimate has become fact, as gold has officially reached a new record, with, for the first time in history, a breaking price of $1606.16.

Just a week ago, the price of gold had peaked at $1590.52 with many financial experts predicting the price would continue to upwards. The Chart above shows the growth of the price of gold over time. In just six months, gold’s value rose $221.70.

Owners, speculators, and investors of gold are now looking to the obvious first question since the peak of gold prices. “What are the reasons for the increasing price of gold?” Demand for gold plays a large roll in its price, and countries like China and India have become more and more involved in the big picture of gold over the recent years. China recently became the number one gold consumer in the world, and India continues to demand gold at high levels.

“The World Gold Council (WGC) estimates that jewellery and investment demand from these Asian countries represented about 40 per cent of total global demand in 2010, and that demand from India is expected to grow overtime.”

With an increase in demand and the ever changing world economic markets, gold has now set a new record price and promises to maintain its wealth and rarity over time. With the price of gold now over $1600, there has never been a better time to sell unwanted or unused scrap gold for the best possible price. Visit www.Cash4Gold.com to find out how you can get real cash for your unwanted or unused gold.

Akshaya Trihiya Gold Festival

India is the world’s largest consumer of gold. Every single year, the country imports over 700 tons of gold, as well as 3,000 tons of silver. Indians are in a frenzy for gold and silver purchases today during an important Hindu festival involving precious metals, called Akshaya Trihiya. The word Akshaya means “that which never diminishes”, because of the festival’s meaning, many people in India buy tons of gold and precious metal on this day with the belief that anything bought on this day will bring luck and also success. Now with the recent record breaking prices of gold, the Indian Festival is gearing up for what is predicted to be one of the highest selling years yet.

One of the bigger merchants of Indian gold during the festival is the Rudra center, which carries a tiny “Shree Yantra” gold coin only a single mm in thickness. The Shree Yantra may be me small, but at 22 karots, it fetches a price of 27,500 RS, or $650,000 US Dollars.

This is a great time for Indians to buy gold because of the high value of gold in the market. But not only is the Akshaya giving Indians a large access to gold at high value, but it is also keeping the value of gold worldwide at a high value. Even the NSE and BSE markets have extended gold trading for ETFs(exchange traded funds) in Gold for Akshaya.

It’s easy to see that the traditional Indian holiday has a huge impact on not only the people of India, but on gold itself and the value of gold worldwide.

Which country consumes the most gold?

It’s a fact that in the U.S, people love to wear gold. From gold necklaces to rings and earrings, gold is a precious metal that is highly valued in the United States. But gold is valued just as highly all over the world. In Germany, gold is even used in drinks such as the Danzziger Goldwasser, due to its non toxicity. Worldwide, the consumption of gold breaks down like so:

50% Jewelry

40% Investments

10% industry

So which country is the biggest consumer of gold worldwide? Here’s a hint…it’s not the U.S!

India is the world’s biggest consumer of gold in the world, as Indians buy about 25% of the world’s gold! China comes in second place, as the world’s largest consumer of gold investments.

“Purchasing approximately 800 tonnes of gold every year, mostly for jewelry. India is also the largest importer of gold, in 2008, India imported around 400 tonnes of gold. “

Source: http://www.commodityonline.com/news/Gold-Why-China-outbeats-India-in-gold-reserves-17196-3-1.html