It is as plain as can be that gold is demanded again both by investors and by jewelry consumers. This applies mainly to fast-growing emerging markets such as India, Turkey, and now also China.
The demand from the Arab region has also increased, as the World Gold Council (WGC), the worldwide association of gold producers, recently discovered with delight. In the first half of this year, the demand for gold shot up by nearly a fifth.
It was above all the demand of the jewelry producers that went up heavily in many third world countries. This is also reflected in the rising price of gold. This trend may well continue for some time.
Moreover, it is not completely impossible that gold comes back into favor as a form of reserves of central banks. At least the Argentine central bank announced in September 2005 that it would increase its gold reserves to secure itself against inflation and a financial crisis. Whether other countries will follow this example is still open. However, many Asian countries have been accumulating their currency reserves vigorously for quite some time.
Gold and shares used as investments are subject to sharp value fluctuations that depend on political and economic conditions.
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Gold (from Indo-European ghel: shiny, (yellow) glinting, bright) is a chemical element and a so-called precious metal, the chemical symbol of gold Au is derived from the Latin name aurum.