There has always been a close relationship between the evolution of global economy and peoples lives. This is why the necessity of previsions appeared. It is not easy to accurately predict the situation of world economy in 2011. Things got even more complicated once major events started to take place. For instance Japan was shaken by a tremendous earthquake followed by a devastating tsunami. These events have repercussions on the economy of Japan as well as on other economies.
The beginning of 2011 was promising. The nations previously hit by recession seemed to slowly recover. The bad news is that the small growth remains in the field of theory while a large amount of people will not be able to notice it in their day by day existence. Many nations still deal with high inflation and unemployment. Although USA keeps its inflation within controllable parameters, this is not the case of unemployment. American political leaders thought that supporting the industries which create jobs would be a solution to this problem, but reality comes to disappoint everybody. Profits were used by corporations to augment share prices and not hire people. By contrast, economies with high rates of growth like India and China seem to be more open to hiring. In respect to unemployment, the predictions for 2011 are not very positive. It seems that its rate will remain high in quite a number of developed states, including the USA.
Another interesting evolution is the one of the oil market. It affects not only the budgets of car drivers but also the price of food. The revolutionary movements in North Africa were followed by a raise of the oil price but Saudi Arabia's forecast of augmented production generated a lowering effect on it. Predictions show that oil price will continue to grow in 2011 but not as much as to affect the economic recovery of the rich countries formerly hit by crisis.
There is no news in the fact that America depends on oil, but it also counts on other tools such as its powerful economy and low inflation to minimize the effects of a price jump. Things are somehow different in Europe. Fuel is highly taxed here which means that rising oil prices will not shake the economies too hard. The risk however comes from the central bankers who fear such a raised price and therefore their pre-emptive actions might prove too drastic, thus endangering European economies who are still trying to overcome the crisis. The Middle East has its own problems. Fuel and food subsidies need to be reduced here and support needs to be given to poor classes. Unfortunately, for the moment, no Arab ruler is ready to take such actions.
The price of gold is also very important in the economy. Its evolution cannot be accurately predicted, but analysts come up with their own attempts based on historical data. Some of them forecast a highest gold price of 5,000 dollars per ounce. Others consider mass psychology and affirm that peoples distrust in this peak of 5,000 dollars per ounce will lead to a resistance against its materialization. A third category of analysts predict a downward movement of gold price in 2011 due to a recovery of the market. Taking into account all these theories regarding the evolution of gold market, there is only one conclusion to be reached: if you want to buy gold, now is the perfect time to do it.
The beginning of 2011 was promising. The nations previously hit by recession seemed to slowly recover. The bad news is that the small growth remains in the field of theory while a large amount of people will not be able to notice it in their day by day existence. Many nations still deal with high inflation and unemployment. Although USA keeps its inflation within controllable parameters, this is not the case of unemployment. American political leaders thought that supporting the industries which create jobs would be a solution to this problem, but reality comes to disappoint everybody. Profits were used by corporations to augment share prices and not hire people. By contrast, economies with high rates of growth like India and China seem to be more open to hiring. In respect to unemployment, the predictions for 2011 are not very positive. It seems that its rate will remain high in quite a number of developed states, including the USA.
Another interesting evolution is the one of the oil market. It affects not only the budgets of car drivers but also the price of food. The revolutionary movements in North Africa were followed by a raise of the oil price but Saudi Arabia's forecast of augmented production generated a lowering effect on it. Predictions show that oil price will continue to grow in 2011 but not as much as to affect the economic recovery of the rich countries formerly hit by crisis.
There is no news in the fact that America depends on oil, but it also counts on other tools such as its powerful economy and low inflation to minimize the effects of a price jump. Things are somehow different in Europe. Fuel is highly taxed here which means that rising oil prices will not shake the economies too hard. The risk however comes from the central bankers who fear such a raised price and therefore their pre-emptive actions might prove too drastic, thus endangering European economies who are still trying to overcome the crisis. The Middle East has its own problems. Fuel and food subsidies need to be reduced here and support needs to be given to poor classes. Unfortunately, for the moment, no Arab ruler is ready to take such actions.
The price of gold is also very important in the economy. Its evolution cannot be accurately predicted, but analysts come up with their own attempts based on historical data. Some of them forecast a highest gold price of 5,000 dollars per ounce. Others consider mass psychology and affirm that peoples distrust in this peak of 5,000 dollars per ounce will lead to a resistance against its materialization. A third category of analysts predict a downward movement of gold price in 2011 due to a recovery of the market. Taking into account all these theories regarding the evolution of gold market, there is only one conclusion to be reached: if you want to buy gold, now is the perfect time to do it.
About the Author:
Choosing the most traditional and common way to Buy Gold will lead you to investing in small bars or coins
No comments:
Post a Comment