Gold prices might jump sixfold! Colombia, Turkey and Russia have adopted their own positions
Gold prices might jump sixfold!
Colombia, Turkey and Russia have adopted their own positions regarding their gold reserves. Selling or buying, some of the countries may regret their choice if gold prices skyrocket.
What could make prices jump sixfold? What would be the position of these and many other countries? Find it out!
Gold reserves reflect somewhat the economic policy of the countries. Of late, Colombia and Turkey among other few countries have shown a rushed economic policy which – after a drop of gold prices – was based on selling their gold reserves.
According to The Economic Times, driven by the low price of gold, on June Turkey lowered its reserves nearly 5 tons, and on July Colombia reduced its reserves by two thirds, leaving 3.77 tons in the country's coffers.
In the meantime Russia has tripled its gold reserves during 8 years – from 400 to 1,275 tons - becoming the sixth largest holder of gold worldwide. Besides, the country produces its own gold. Last year gold mining corporations produced nearly 300 tons of gold, 76 of which were purchased by European banks.
What does this say about the Russian Federation's policy? The policy is known to be currently focused on seeking a gradual decline of the U.S. dollar participation in currencies and gold reserves. In addition, holding this hoard of gold could turn Russia into the largest seller for China, which at the same time would strengthen the Chinese yuan and again impact negatively on the dollar.
After this massive selling, some experts in the market have stirred things up a little for the Colombian and Turkish government with their forecasts on gold prices possible increase. Gold prices may plateau by the end of 2015 at a good level, in spite of the Fed interest rate increase.
Then on 2016, gold prices would cross the threshold of $1,300 - $2,000 per ounce, joining forces to go sky-high even up to $6,000 per ounce. This outlook on prices might then end up with investors piling into the safe haven asset before the end of the year, thus spurring the demand.
People can now take solace from the fact that it is possible to buy gold under the most profitable conditions. The Global InterGold Online Gold Shop offers physical gold bars of the highest quality for clients worldwide.
