Gold and Its Demand

1041 Words Jan 29th, 2018 4 Pages
This was a drastic downfall in the price of gold in 2008 and this has directly affected investors in a number of ways. The investors suffered losses of large margin and in addition to this, many of the investors had paid from ten to fifty percent of the deposits of their shares and when a downfall occurred in the prices of gold, many of the investors lost almost whole amount of their capital. Beside this, the fall in the prices of gold was less as compared to other equities and commodities (Bohm, 2011, pg 34-39).
The year 2008 changed the shape of competition among the gold investors and the main characteristic of this year was the failure of government in the banking industry. The entire economy was suffered in this year and in this year of deflation; the affect on gold was a decrease in price.
Gold prices fall to $690, then came back to $800 but then once again fall down due to poor financial conditions. The value of $ which was less at the start of 2008, started to increase during the mid of the year and the economy was becoming better but again at the end of the same year, the value of $ began to decrease and this had a direct impact on the prices of gold.
In addition to this, the central bank of different countries started decreasing their interest rates and loans were provided on easy terms and conditions.
Interest rate offered by the Swedish…

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