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Updated by Joanna James on May 02, 2024
Headline for A List of Trends that will Drive Gold in the Near Future - Is it a worthy investment?
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Joanna James Joanna James
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A List of Trends that will Drive Gold in the Near Future - Is it a worthy investment?

A lot of people around the world today are interested in the idea of investing in gold. The article below provides information about a few trends that will likely drive gold in the next few years.

1

The rise of the middle class

Throughout the world, the middle class is growing. In many economies in the world, more and more people are becoming affluent and entering the middle class. Particularly in countries like India and China, this trend is quite apparent. It is estimated that in the coming decades, India's middle market will increase from 19% to 73%.
India and China are countries that are major buyers of gold. When the middle-class increases in these two large economies, the price of gold can also see steady growth. This will be quite favourable for investors who are interested in investing in gold.

2

Demand and supply dynamics

Gold jewellery and accessories are incredibly popular consumer goods. There are many popular jewellery shops in Sri Lanka that sell high-quality accessories with stunning designs. Places like Raja Jewellers are quite popular in the country. The collective effort of the gold jewellery manufacturers in the world will certainly increase the price of gold in the coming years.
Gold is extensively used to manufacture many types of products as well, so it has demand as a raw material too. Gold is an indispensable component in the manufacturing of several types of consumer durable goods. It is also used to manufacture high-end electronic components that are used to make hybrid and electric cars which are rapidly increasing in popularity. As people are becoming more and more aware of topics like global warming and energy conservation, the demand for solar panels is also rising. Gold is used in to manufacture solar panels too. Therefore it is safe to assume that the demand for gold for manufacturing processes will also see significant growth in the future.
But there is a problem as gold miners will find it very hard to match the demand with increased supply. This imbalance will further push the price of gold in the market in the coming years.

3

Predicted volatility of the next few years

The macro-economical landscape is set to change dramatically in the coming years. Political and social instability is inevitable as the demographic make-up is changing in leading economies in the world. While the western countries will struggle with a decrease in the working population, eastern countries like India and China will see unprecedented growth in this area. This will certainly shift global powers from the west to the east, which will further increase the tensions and volatility of the markets.
Gold is a great investment option to consider during volatile times. The value of gold will increase steadily in spite of the changes in the economic, political and social environments. This is a great reason to consider investing in gold in the next 30 years. You will be able to earn a great ROI and enjoy a good degree of financial stability through this investment option.

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