Goldcorp Inc. (USA) (GG), Barrick Gold Corporation (USA) (ABX): Has Gold Lost Its Mojo?

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India and China

Demand for gold is expected to rise in India and China. Due to their rapid industrial development, economists speculate that domestic gold prices will increase due to higher demand. India in particular is the world’s largest consumer of gold because of its constant growth and social values. At the same time, other analysts believe that gold is a metal with very low industrial use. Thus, demand for gold shouldn’t increase.

The Chinese demand for gold has been increasing since 2007. The average increase in gold demand is 27% percent, meaning a significant increase in the overall demand of gold globally.

Summary

Given the recent crash in the gold market, the overall vibe for the gold has turned negative. Many analysts predict that gold prices are going to fall in the next decade, which indicates an end to the gold obsession era. The increased volatility is also a serious concern for those looking for safety. Due to this fear, many risk-averse investors have either left the gold market or are looking for the right time to get off the wagon.

The article Gold Has Lost Its Mojo originally appeared on Fool.com and is written by Nur Tarkak.

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