Fall in Exchange Causes Stir in Gold Goods in Azerbaijan
Azerbaijan, Baku / Trend / Gold is one of the most popular goods among peoples. Permanent welter among people at counters with adornments proves gold is the best placement of funds. "Gold is the shortest way to make money," consider customers.
Fall in exchange of US dollar caused stir in gold market in Azerbaijan. Such a forecast for price of gold provokes Azerbaijani population to exchange US dollar for precious metals. Demand for gold both by customers and jewelers cause rise in price of gold goods in Azerbaijan. The Azerbaijani State Statistic Committee reported the rise in price of gold made up 107,2% in January-September 2007.
The price of gold in markets in Azerbaijan directly concerned with the rise prices of gold at world markets. We could buy the gold of 750 rate for AZN 13 or 14 per gram two yares ago, but today the gold of 585 rate is cost AZN 10. The prices of gold increased to $770 per ounce last week.
Prices of gold changed directly due to change of prices of oil and gas. High prices of oil causes increase of inflation, which in its turn makes gold best insurer for inflation risks. The price of gold was $ 764,5 per ounce on 19 October, the figure increased to $770,9 per ounce by the end of the day. On October 22 the prices made up $750 per ounce, so the same day the price of oil decreased in the ICE and NYMEX.
Instability of prices of gold in Azerbaijan is predetermined by the country exported precious metals. In compliance with the contract signed between Azerbaijan and R.V. Investment company ten years ago to develop six gold, silver and copper fields in the south west of the country was planning to commence develop and export in 2008.
Great interest of foreigners in gold goods of Azerbaijan proves positive situation in precious metals market. Strengthening of world economy through advance dynamic of developing countries leads to shortages of natural resources. The current development of the world economy in background of strained political situation would enable to support high demand and price both for electric energy and base metals.
It is too early to speak about Azerbaijan success in the world arena both as the owner of black oil and gold. However, it is real that the State Oil Fund may operate in Azerbaijan.
Azerbaijani customers of gold goods should be cautious buying gold. It is complicated to chouse qualified gold in local market due to numerous differences of gold gods. Very often the level of admixture exceeds the admitted norm consequently gold loose its quality.
(Ellada Khankishiyeva- the expert of the analytical centre of Trend )