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14 Factors That Can Push Gold's Price Higher

Overall, if you check the historical price of gold, you will see an "uphill" line on the chart. Over time there were small "zig-zags", but the overall trend is upward!

Economic crises always have an effect on gold's price: they push it higher! This is happened during the Great depression and during the 1980s Economic Crisis as well. Gold's price skyrocketed.

The price of gold per ounce has been steadily increasing throughout the 20th century, but has been sped up during the first decade of the 21st century. Even billionaires and famous investors have turned to gold to secure their fortunes.

But what makes gold's price increase? How long will the trend continue?

Gold price is generally pushed up by the following:

 1. Inflation, potentially hyperinflation: especially the rich start buying gold, whenever currency loses value substantially; currently, the Federal Reserve is printing more and more dollars to keep paying the US debt, this is part of the "Quantitative Easing" measures, which are intended to improve, stimulate the US economy, but there is a negative effect: currency devaluation brought by inflation.

 2. Economic slowdown: whenever there is a crisis, precious metals act as "life boats", safe havens for those looking for an escape from financial losses

 3. The price of oil: quite often during history, when oil's price increased, it dragged gold along with it; currently there are conflictual situations in the Middle East, oil production is decreasing, so you should expect pushing effect on gold's price

 4. The quantity of gold mined: gold is a rare metal, but we've been mining it for thousands of years, we will eventually run out of it, much of it will be bought up by the rich and the states, financial institutions - another factor to increase the price of gold

 5. The potential return to the gold standard: there are countries considering to return to the gold standard - experts say that China might be planning to link their yuan to gold, in order to ensure value, create long-term stability for their currency

 6. The crash of the US dollar, the euro: these are fiat currencies and they're bound to crash, it's just a matter of time

 7. Intense purchases of gold: the fact that states, companies and the population starts buying gold - this itself pushes prices higher (the higher the demand, the higher the price and, as we know, supply of gold is finite, it's a scarce metal, so these have a conjugated effect on its price)

 8. Countries are using more and more gold in transactions: the US dollar and the euro are the main reserve currencies in the World, but due to the economic crisis many countries are "bypassing" them, they tend to avoid dollars and euros and trade in gold and other currencies instead (for instance, China and India are using gold in international transactions increasingly - starting with late 2011, the tendency to use gold in transactions has increased!)

 9. Gold sellers advertising their products intensely: merchants trying to sell their gold products are efficient in attracting the population's attention - gold is more advertised, like a product and the result is that more people will buy!

 10. Economic collapse to trigger higher gold prices: as you can see from the news, the EU and the USA have serious economic problems and the lookout is gloomy, a crash is expected and this will influence the general population into buying more gold (when the masses hit precious metals, prices will soar)

 11. Countries are increasing their holdings of gold: large numbers of countries (big and small) are taking measures to increase their gold reserves, as a precautionary measure to cope with the next collapse.

 12. Gold's price has been increasing for about a century and the trend continues: check the historical price of gold on our site and you will see that it's a general trend (if you bought gold in 2000, you'd cash in 6 times more money for it in early 2012!), so you'd better buy gold now and you'll be able to wait for its price increase in a relaxed way, feeling safe

 13. The populations of India and China are buying more gold: China now allows the population to buy gold, in fact, it encourages it; the number of rich people in India and China has been growing as the countries' are increasingly prosperous - immense numbers of people from China and India are expected to purchase gold (this was not a factor in the past in gold's price, back then, only the richest countries of the west were important buyers of gold)

 14. The panic of the masses will push gold higher: as citizens across the globe panic, they will start buying precious metals and most will attempt buying the yellow metal, pushing its price high, potentially many dealers will even run out of investment gold stocks due to high demand!

The conclusion we could take is that gold is going to increase as long as these 14 factors above are valid. Whenever these happen, the price of the yellow metal soars.

Experts predict the gold's price will "go through the roof", as a huge financial crash is nearing. If you wait for too long, it will be too late to secure your assets and you and your family will suffer the consequences of hyperinflation.

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