Economic Instability and price hike of Gold

0
63

Farzana Sharmin: Gold is a precious metal. It has great economic impact in present time. Even since from ancient time gold was considered more valuable attractive metal. This metal has not only value for its ornamental uses, but also it has economical importance. According to the survey of the still now price of Gold in Bangladesh 24 carat gold price of per gram is 5382.8 take BDT. When people have not sufficient money in hand or if any country’s Government face in trouble cash note crisis, even different factories and any kinds of manufacturing compel to stop production lack of capital or any  kinds of problems, most of the people lost their jobs.

Loan adoption tendency increase in that time demand for money increases than supply of money. At this time Central Banks of many countries decide deducting interest rate on loans considering the great depression condition of their countries where the value of money plunge in the down and amount of circulation of paper money are increasing high day by day. As a result, demand of gold metal which is considered as reserve money of the central bank has been rising up. Corona virus created financial instability which has been keeping bad impact on the share and bond markets in this year. Rich investors of local or international level are no longer feel share market is safe investing platform for their money in this year .So they are buying gold in exchange for buying shares or bonds. As a result, demand of gold increases higher than supply of demand.. In this year gold collection of gold mining has gone a great trouble work too. So gold prices are rising up simultaneously with demand of gold again and again in this year.

International gold smuggling related crime rate is also rising up in the world including Bangladesh. Analytical data of exchange traded fund traders are showing great interest for buying and selling gold than other money in this adverse recession year. When the world fall in any kind of big trouble for war or recession its aftermath that trouble gold price become unstable.

When a normal situation seen in the world the price of gold becomes stable .The expertise of Economists hopes that when effective corona vaccine will have found in the world market, gold prices will become a normal reinstate condition again.
We hope gold price will get reinstated, stable condition again.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here