The gold and silver industry is a vibrant one, awash with changes throughout the world. As an investor, it is important to know and understand the drivers within this industry that bring about changes in spot prices of gold and silver. The prices of precious metals vary depending on a number of factors, including supply, demand, macro-economic and geo-political forces. Demand can fluctuate suddenly, spurring a sudden spike in the spot price of gold.
For example, in January 2017, the Russian Central Bank bought 1 million ounces of gold. The move was a bid to increase Russian gold reserves, which were already at 199.1 tonnes in 2016. Russia’s gold buying spree is a concerted effort to hedge risks by moving away from international capital and money markets to the relative safety of precious metals.
For more information, you can always reach our team of investment advisors on 020 7060 9992 or simply send us an email. The industry news section is updated regularly with useful updates for investors, so stay tuned and watch this space.