What are the Circumstance Gold May Fall Down ?

What are the Chances Gold may fall down ?

* What about “GOLD WAR ?”  If Gold War came into existence then Gold will be demolished like anything. When Trade War, Crude oil war exists then why not GOLD War ?

* Any alternative resource/products other than Gold, then no more demand in real market

* Gold is one of the most widely discussed metals due to its prominent role in both the investment and consumer world.When reserve bank purchases gold, it affects the supply and demand of the domestic currency and may result in inflation. This is largely due to the fact that banks rely on printing more money to buy gold, and thereby create an excess supply of the fiat currency. (This metal’s r Many people mistakenly use gold as a definitive proxy for valuing a country’s currency. Although there is undoubtedly a relationship between gold prices and the value of a fiat currency, it is not always an inverse relationship as many people assume. Thus if central banks decides to come up with any other option then GOLD might been in trouble

* Remember about 2007-2008 Crisis ? The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930’s. There were many banks went to bankruptcy. Top banks like Lehman Brothers filed for bankruptcy on September 15, 2008. Merrill Lynch, AIG, HBOS, Royal Bank of Scotland, Bradford & Bingley, Fortis, Hypo Real Estate, and Alliance & Leicester were all expected to follow—with a US federal bailout announced the following day beginning with $85 billion to AIG. In spite of trillions paid out by the US federal government, it became much more difficult to borrow money. The resulting decrease in buyers caused housing prices to plummet.

* Thus Nothing is constant in world, anything might happen anytime. There are less chances in above factor, Gold hasn’t faced any of the bubble factor yet, just summarizing how come Gold Market can affect. 2018-2019 Forex Currency Markets are unstable because of Brexit (EUR-GBP) , Trade War (USD vs China makes other major currency volatility) , Australian Markets-2019 became the first time faced crisis and recent Japanese Currency over bought makes the investors to safe heaven for GOLD.

GOlD or Oil ? Which is more Precious ?


Gold vs.Oil

Everything depends on oil, it heats our homes, runs our cars and machinery, and produces our electricity which in turn runs our computers, the internet, entertainment, lights and fuel.  Gold is important but cannot compared with Oil. Thus Oil stands more important not just important. In the modern economy, OIL is just important, if not more important, than GOLD. An argument could be made that our currency should actually be based on oil rather than gold. The only problem is portability… who wants to carry a barrel of oil to the grocery store? 

Why not “GOLD WAR ?”  If Gold War come into existence then Gold will be demolished like anything. When Trade War, Crude oil war exists then why not GOLD WAR ?

Oil as a measure of inflation:

Oil might also serve as a measure of inflation, Let us compare Oil vs Gold Theoretically, since both are commodities, if it were truly democratic, inflation would raise all prices equally. Thus the ratio of the price of gold to the price of oil would remain constant. So then, as the value of the dollar depreciated (due to an increased supply of dollars) the price of both gold and oil would increase in tandem. This however has not happened. Both oil and gold are subject to external forces that have affected their price. So at times each has been overpriced compared to the other.

The Great Oil Crash of 2018: What’s really happened ?

The meltdown in the oil market has caught almost everyone off guard.

In the span of mere weeks, crude prices went from a four-year high to a full-blown bear market. The oil crash — crude is down more than 30% from its recent peak — was triggered by a series of factors that combined to spook traders who once saw $100 oil on the horizon.

“The sheer scale of the move is triggering unpleasant memories of 2014 and 2015,” said Michael Tran, director of global energy strategy at RBC Capital Markets, alluding to the last oil downturn.

President Donald Trump celebrated the oil crash.

“Oil prices getting lower, great! Like a big Tax Cut for America and the World. Enjoy!” Trump tweeted Last November . “Thank you to Saudi Arabia, but let’s go lower!”

Iran headfake

Saudi Arabia deserves some of the “credit” — but certainly not all of it.

Earlier this year, the Trump administration vowed to zero out Iranian oil exports. That tough stance on Iran sanctions lifted prices dramatically.

Under pressure from Trump, Saudi Arabia ramped up production to an all-time high. That’s critical because Saudi Arabia is like the central bank of oil. It’s the world’s largest exporter and the only country with the ability to significantly ramp up output. Russia and the United States also accelerated production.

But the Trump administration shocked the oil market earlier this month by taking a softer approach on Iran. Temporary waivers were granted, allowing India, China and other countries to keep buying crude from Iran.

The Iran headfake left the oil market suddenly facing a potential supply glut. OPEC is now under pressure to significantly cut output at next month’s meeting in Vienna to help put a floor beneath the market.

Demand fears

But this oil downturn isn’t solely about excess supply. The slowdown in global economic growth appears to already be denting demand.

Appetite for oil in the United States has been “very robust,” but the IEA recently warned of “relatively weak” demand in Europe and developed Asian countries. And the IEA flagged a “slowdown” in demand in India, Brazil and Argentina caused by high prices, weak currencies and deteriorating economic activity.

Last month the International Monetary Fund downgraded its 2019 GDP estimates for both China and the United States because of the trade war. Global GDP is expected to slow from 2.9% in 2018 to 2.5% next year. That’s never good news for oil, which powers the economy.

Gasoline keeps getting cheaper

Oil consumption nation given pre-Thanksgiving Day oil crash made traveling cheaper for millions of Americans as well as others. That could provide an extra boost to the economy this holiday shopping season.

Of course, the sharp decline in oil also clouds the outlook for America’s oil industry. The last downturn in energy sparked dozens of bankruptcies and wiped out hundreds of thousands of America’s oil jobs in states like Texas, North Dakota and Oklahoma.

“Retail gasoline prices have come off significantly. What more does Trump want?” said RBC’s Tran. “At some point you start to hurt your own domestic producers. And a significant portion of the oil and gas industry is his base support.”

American shale oil boom

Although Trump praised Saudi Arabia, his tweet omitted the central role played by America in the oil plunge. Lifted by the shale oil boom, the United States recently overtook Russia and Saudi Arabia to become the world’s largest oil producer for the first time since 1973.

The International Energy Agency predicts US output will have soared by more than 2 million barrels per day in 2018. It’s expected to climb further next year. No other country has ramped up production to that degree.

The fear among oil traders is that the world may not need all that American shale coming to market. That’s what helped cause the last oil crash. US inventory levels have increased nine straight weeks, according to numbers released on NOVEMBER-2018

Gold vs Oil Conclusion

” Gold is important however Crude Oil more important than GOLD, Without Gold we can survive but think about Oil ?”  As few main crash in oil industry affected badly because of over production, Terrorist wars, economic crisis on oil countries and OPEC rules not yet given clear picture these leads to oil market not been stabilized , however crude oil production came into control by U.S government taken many strict action thus Oil will have steady demand.” Steady demand in the meaning of stable market position with consumption of fuel based on the volume and oil production market will retain its market.