5 thoughts on “Why is the price of gold in 1997 falling?”
Victoria
Why does the price of gold fall sharply? There are some reasons. First, the price of gold rose from US $ 252/ounce in August 1999 and US $ 681/ounce in October 2008 to 1921 US dollars/ounces in September 2011. Until now, it can be said to be the adjustment period. After a sharp fall in mid -April, the fell from the peak more than 20%, technical analysts believed that they had entered the bear market. Whether it is adjusted or a bear market, it depends on whether the price in the future continues to fall or picks up. Which situation is, is also a test of technical analysis and fundamental analysis. If there are more investors who believe in technical analysis, most of the prices will continue to fluctuate and fall; if there are more investors who believe in fundamentals, most of the prices will fluctuate. The second, as mentioned above, the loose monetary policy of various countries (especially the United States, because the price of international gold is priced at the US dollar), so that people can buy traditional risk aversion and the gold price of rising prices, which is beneficial to the price of gold. Rising. However, in recent months, the US economy has been better in recent months, making people expect that the currency easing policy will weaken. Therefore, it is considered to be unfavorable to gold prices, and gold sells gold in advance and short gold in the futures market. Therefore, it is not the "loose monetary policy of the loose monetary policy", but the tightness of the monetary policy is expected. In third, after the news of the sale of gold in Cyprus, the empty golden person took the opportunity to make short gold, so that the price fell sharply within two trading days. recently reported that the Swiss People's Party proposed a motion entitled "Survir us Switzerland", requiring the Swiss National Bank to take back the gold reserves stored overseas and store it in their own country for a long time. At the same time, the People's Party will also launch a referee of the whole people, "banned the central bank from selling gold reserves, and forced the central bank to increase the proportion of gold assets to 20%of the total reserves in a legal form." The report also said that the Federal Prime Minister's Office has confirmed that the event has collected more than 100,000 legitimate signatures and must be carried out according to Switzerland law. The statistics at the end of February this year show that the Swiss central bank has about 1050 tons of gold reserves, accounting for about 10%of its total reserves. Therefore, if the proposal becomes a law through the referendum, Switzerland must increase the proportion of gold assets to 20%of the total reserves, which means that the Swiss central bank needs to purchase about 1,000 tons of gold reserves. At the current price of gold, this is about $ 50 billion. Will this prompt to buy a large number of gold in gold and make the price rise? 2008 During the crisis of financial integration in the year, the price of gold fell from about $ 950/ounce to $ 681/ounce. In terms of proportion, the decline fell in the middle of April. But from 2009 to 2011, the price increased to more than 2.82 times. 2.82 times the $ 1321/ounce is $ 3725/ounce.
The economic crisis in Southeast Asia indicates that Asia ’s inflation is inflated, money depreciates, and the US dollar is less, it is equivalent to the appreciation of the US dollar, and the decline in gold prices is normal.
Because of the Southeast Asian financial crisis in 1997, major banks faded the value of gold. In the 1990s, financial innovation continued, and the benefits of gold were much less than stocks such as stocks, bonds and other valuable securities, and the cost of gold reserves was the highest in international reserves. Considering the good development of the world economy at that time, countries have replaced gold with other reserves that can be more profitable, forming a situation of selling gold, and naturally suppressing the price of gold.
Why does the price of gold fall sharply? There are some reasons.
First, the price of gold rose from US $ 252/ounce in August 1999 and US $ 681/ounce in October 2008 to 1921 US dollars/ounces in September 2011. Until now, it can be said to be the adjustment period. After a sharp fall in mid -April, the fell from the peak more than 20%, technical analysts believed that they had entered the bear market. Whether it is adjusted or a bear market, it depends on whether the price in the future continues to fall or picks up. Which situation is, is also a test of technical analysis and fundamental analysis. If there are more investors who believe in technical analysis, most of the prices will continue to fluctuate and fall; if there are more investors who believe in fundamentals, most of the prices will fluctuate.
The second, as mentioned above, the loose monetary policy of various countries (especially the United States, because the price of international gold is priced at the US dollar), so that people can buy traditional risk aversion and the gold price of rising prices, which is beneficial to the price of gold. Rising. However, in recent months, the US economy has been better in recent months, making people expect that the currency easing policy will weaken. Therefore, it is considered to be unfavorable to gold prices, and gold sells gold in advance and short gold in the futures market. Therefore, it is not the "loose monetary policy of the loose monetary policy", but the tightness of the monetary policy is expected.
In third, after the news of the sale of gold in Cyprus, the empty golden person took the opportunity to make short gold, so that the price fell sharply within two trading days.
recently reported that the Swiss People's Party proposed a motion entitled "Survir us Switzerland", requiring the Swiss National Bank to take back the gold reserves stored overseas and store it in their own country for a long time. At the same time, the People's Party will also launch a referee of the whole people, "banned the central bank from selling gold reserves, and forced the central bank to increase the proportion of gold assets to 20%of the total reserves in a legal form." The report also said that the Federal Prime Minister's Office has confirmed that the event has collected more than 100,000 legitimate signatures and must be carried out according to Switzerland law.
The statistics at the end of February this year show that the Swiss central bank has about 1050 tons of gold reserves, accounting for about 10%of its total reserves. Therefore, if the proposal becomes a law through the referendum, Switzerland must increase the proportion of gold assets to 20%of the total reserves, which means that the Swiss central bank needs to purchase about 1,000 tons of gold reserves. At the current price of gold, this is about $ 50 billion. Will this prompt to buy a large number of gold in gold and make the price rise?
2008 During the crisis of financial integration in the year, the price of gold fell from about $ 950/ounce to $ 681/ounce. In terms of proportion, the decline fell in the middle of April. But from 2009 to 2011, the price increased to more than 2.82 times. 2.82 times the $ 1321/ounce is $ 3725/ounce.
The thousand -foot gold ring I bought in 1997 was 120 yuan per gram
The economic crisis in Southeast Asia indicates that Asia ’s inflation is inflated, money depreciates, and the US dollar is less, it is equivalent to the appreciation of the US dollar, and the decline in gold prices is normal.
Due to the fall of oil prices in the Middle East in 1997, the financial crisis caused the gold decline
Because of the Southeast Asian financial crisis in 1997, major banks faded the value of gold. In the 1990s, financial innovation continued, and the benefits of gold were much less than stocks such as stocks, bonds and other valuable securities, and the cost of gold reserves was the highest in international reserves. Considering the good development of the world economy at that time, countries have replaced gold with other reserves that can be more profitable, forming a situation of selling gold, and naturally suppressing the price of gold.