The Steady Value of Gold against Other Commodities

When compared to other trading commodities, gold has shown a steady increase in value even when other commodities in the market seem to be losing value. Gold coins are the commodity which interests most investors with the sales of and demand for these coins hitting an all-time high compared to the previous years’ performance.

In the month of May of this year alone, the US mint has managed to sell 85,000 ounces of the famous American Eagle gold coins. Although such sales decrease the spot price of this precious metal asset, huge increases in price are always expected the following year. In this case, the price of gold is expected to increase in the year 2012 with analysts estimating the increase at 17% with the possibility of further incremental price increases expected throughout the year.

With the dollar now losing value and with the looming possibility of inflation, the demand for gold has risen as investors attempt to keep their portfolios safe from losses. The sales of gold in the month of May alone have gone into the record books as having the highest price for gold since the month of August in the year 2010. The strong demand for the precious commodity is expected to increase as more investors seek gold over other commodities to secure their portfolios.

Gold offers people the security and safety they search for when diversifying assets and even central banks around the world are now out to purchase more gold for the same reason. The largest gold buyers this year include countries such as Mexico, Thailand and Russia, all of which have bought gold bullion worth of billions of dollars within the span of a few months. This kind of buying has resulted in central banks securing approximately 18% of the gold available on the market.

The jewelry market is another field that has always had a demand for gold and this demand will continue this year. This demand for gold from the jewelry industry is actually expected to increase and has already shown increases as compared to the demand of last year.

With the increased demand for gold, the price also increases. This means that in the next few years the price of gold is expected to rise. Gold coins can be bought in various ways and there is always a market for a willing buyer and a willing seller.