Discuss with your parents why gold prices are rising day by day??
Answers
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Answer:
With an annual demand equivalent to about 25 percent of the total physical demand worldwide, India is one of the largest consumers of gold. Traditionally, there is a surge in jewellery demand during the festive and wedding seasons, leading to a rally in gold prices. While the demand for gold has a role to play in its price, there are several other factors that have a bearing on it as well.
According to a report by the World Gold Council, annual data from 1990 to 2015, revealed two significant factors affecting gold consumer demand (jewellery, and bar and coin combined) over the long-term. "All else being equal, gold demand is driven firstly by, income i.e. gold demand is seen to rise with income levels. For a 1 percent increase in income per capita gold demand rises by 1 percent and secondly, gold price level i.e. higher prices deter gold purchases. For a 1 percent increase in prices, gold demand falls by 0.5 percent."