Trade Binary Options 2015

Gold week 40 2015

gold2After rising nearly every year since 2002 until 2011, with the only downward yearly blip happening in 2008 gold has seen a sharp decline since 2011, particularly during 2013. This decline has slowed down however in 2014, and we think it is set to turn the corner and rise once again in 2015. Here’s why.

In simplistic terms rising gold prices reflect uncertainty in the world. It is something of intrinsic value to us as human beings and if everything else were to fall into dust, gold would be the one commodity we would value almost till the end. At the start of 2014, with the worldwide economy recovering, the downward trend of Gold looked set to continue but then along came the Russia Ukraine crisis, something which few would have foreseen. 

The fact is, if peace efforts by Merkel and Hollande are not successful we could be on the brink of a serious war, the potential scale of which is as alarming as it’s uncertain. Serious political and social tensions are not just limited to the former USSR; radical Islam in both the Middle East and Africa shows no sign of going away. Also let’s not forget territorial disputes in the South China Sea between China and South East Asian countries. All these factors are contriving to paint a very concerning worldwide picture.

Russia notably was the world’s largest buyer of gold in 2014, buying an astonishing amount, over 150 tonnes. This buying makes sense for at least one reason, it gives a certain amount of financial protection to a country whose currency was getting badly hit by sanctions and also more worryingly it would make sense if they believe there were going to through a prolonged period of turmoil. 

Ever increasing consumer demand from the nouveau riche in the new economic superpowers, India and China, to top it off India actually lifted its restrictions on gold imports that it had imposed in 2013 at the end of 2014. Demand for Gold looks simply stronger than ever!

Investor notes:

All these reasons point to an end of the downward trend of gold over the last few years. BinaryOptionsStrategy.co.uk expect to see gold going in one direction in this week, UP!