Ali Khorrassany Views on Gold Prices

Ever wondered what could be the reasons behind the changes in gold prices and what factors could lead to an increase or a drop in gold prices?

There are many reasons why the prices of gold increase, but the drive is almost always the same: People wanting to secure their investments in times of crises.

Whenever a local, regional, or international crisis occurs, such as armed conflict, economic insecurity, or pandemics, people rush to secure their hard-earned cash by converting it into gold, a safe haven that never loses its value. This surge in demand inevitably increases the prices of gold, while the supply remains the same. 

International gold prices are inversely tied to US dollar exchange rates: Any drops in the strength of the US dollar drive the price of gold upwards because of the demand. In Egypt, gold prices therefore rise when there is an increase in demand, and when the rate of the dollar to the Egyptian pound increases.

What makes gold incredibly valuable is that it is a low-risk commodity with no liability. Say for example, you have investments in a particular currency, the country of this currency is responsible for ensuring that their currency remains stable and increases in value. Of course many factors come into play here and affect the value of said currency. Gold, however, has an internationally recognized and agreed upon value that retains its worth safe during crises.

About Ali Khorrassany Jewellery:

Ali Khorrassany is a third generation jeweller specialised in high quality diamonds and gemstones since 1918.

Explore Ali Khorrassany collection on www.1trove.com