Oct. 17, 2004
Gold, which has been quietly saved by many people, from housewifes to businessmen, on the chance of bad economic times, is in a silent rise.
Four years ago gold was valued at $273 per ounce. It recently topped $420 per ounce. The jewelry market reflects the rise in gold-bullion prices: the price for 24 karat gold content was 19 million Turkish Liras(TL) in September. Last week it surpassed TL 20 million, an important psychological threshold.Market experts claim that the "rise in gold prices will continue".
The number one factor affecting the increase: the rise in oil prices. Chaos in Iraq, as well as the global war on terror, convinced investors to buy gold. Meanwhile, the increasing energy requirments of China and India has stirred the market. The last jump in gold prices -- an $800 leap -- happened in 1980, just after the death of Yugoslavia's leader, Tito. An event that caused widespread anxiety that the fractious country would splinter and turmoil would ensue
The head of the Istanbul Chamber of Jewellery, Ahmet Karbeyaz, said that prices would climb and added that for two years there has been a major increase in the demand for gold. That, coupled with a market in a panic over volcanic oil prices, makes a perfect environment for gold. Karbeyaz said, "This current world economy highlights gold as a safe investment".
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