The price of gold is not falling so that no one buys it because there are still many factors that support the price of gold.
These factors mainly include
Inflation: Gold is often seen as a hedge against inflation, as its value tends to rise when inflation is high.
Geopolitical uncertainty: Gold is also seen as a safe haven asset during times of geopolitical uncertainty.
Central bank demand: Central banks around the world are increasing their gold reserves, which is also supporting the price of gold.
Limited supply: The supply of gold is relatively limited, which also helps to keep prices high.
However, there are also some factors that could put downward pressure on the price of gold in the future. These factors include:
Rising interest rates: Rising interest rates make other assets, such as bonds, more attractive, which could lead to some investors selling their gold holdings.
Stronger US dollar: A stronger US dollar makes gold more expensive for buyers in other countries, which could also lead to lower demand.
Overall, the price of gold is likely to remain volatile in the near future. However, there are still many factors that support the price of gold, and it is unlikely to fall to a point where no one buys it.
In addition to the factors mentioned above, the price of gold is also influenced by investor sentiment. When investors are feeling more risk-averse, they tend to buy gold as a safe haven asset. Conversely, when investors are feeling more confident, they may sell gold and invest in other assets.
What is done in total gold production
So the price of gold will not go down just because the buying of jewelery is going down. It doesn't mean that it won't be affected, it will be affected, but due to the current abnormal economic situation, the price is going up.
50% gold is used to make jewellery.
7 - 10 % gold is used for professional use. Gold is used in the manufacture of many medical devices.
All remaining gold is used for investment.
Robert Kiyosaki said in Rich Dad Poor Dad that if a man wants to be rich, he must let his money work for him.
So the big money capitalists and financial institutions all put their money to work. Only then will money grow. How they do it. It is very simple, they invest their money in places that give good returns and have no risk of investment. Through this their money will multiply over time.
What are those places
Bonds
Shares
Real Estate
profession
All these four places fluctuate depending on the economy. All these will generate a good return on investment during times when the economy is doing well.
But in the current situation these four not only give bad returns but also make our investment risky.
So whenever the stock market is experiencing a huge decline or the economy is bad, the rich will invest the money that came out of other investments in gold. That is why Golden Day is reaching a peak now.
Gold is the only reliable investment these days. When the economy returns to normal, they will come out of gold and start investing again in stocks and bonds. At that time the price of gold will fall.