Investing in gold: the cost of a gram crept close to 20 thousand tenge

the Official cost for one gram of gold in Kazakhstan on 21 February 2020, according to the national Bank, is 19 475 29 tenge tiyn. In just a month and a half, his price has risen by 5.1% (more than 950 tenge). Such interest can not offer any single Bank Deposit. And amid falling foreign currencies gold became the most profitable of the available to most investment tool.

In General, the positive dynamics of this precious metal has been celebrated for a long time.

For the year (from February 20, 2019) cost per ounce increased by 21.3% (more than 3.4 thousand tenge)

So expensive in Kazakhstan, the gold has never been worth it.

However, world prices are also showing strong growth. Now Troy ounce costs about $1 645 is about $125 more than on 1 January. Only for the week from 17 to 21 February, the price rose to $60, reaching its highest level in 7 years. The last time gold was in January 2013.

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Why prices are rising?

Gold is traditionally considered a safe asset. That is, investors invest in it when it’s too risky to keep money in currencies, oil, and securities. Usually the demand for gold is increasing against the background of falling or uncertain markets. What is happening now.

The key factor coronavirus. The number of cases has exceeded 76 thousand people killed more than 2.2 thousand of the Home country of our defeat is, of course, China, whose economy suffers the most. Primarily due to production downtime. First Christmas vacation extended by a week and a half, but after production volumes are at a level less than half of the normal parameters.

Hardest-hit small businesses experiencing problems with raw materials and goods, and customers alike. No problems only the key developers of Internet content: China’s population is not busy with work, spends the time online.

The situation in China is directly reflected on the global economy. According to forecasts, the sales of smartphones, laptops, and smart watches from China in the first quarter of 2020, will fall to 10-16%. And this is a sharp decline in demand for most types of prommetally and raw materials. Russia’s Finance Minister Anton Siluanov, for example, has estimated the losses from the coronavirus in a billion rubles a day.

As a result of international monetary Fund lowered annual economic growth forecast of China and the world in General

Expectations on the growth of China’s GDP is reduced by 0.4 percentage points (to 5.6%), global figure by 0.1 p. p. (to 3.1%). However, the IMF is generally optimistic: here believe that the impact on the global economy will be relatively small and short-term.

Rising prices – rising reserves

For Kazakhstan the rise in gold prices is good news. International reserves of the Republic have long been converted from dollars to precious metals. According to the national Bank, in January 2020, the volume of assets in freely convertible currency (FCC) amounted to $9 billion, 667 million Is 4.1% less than in the beginning of the year. Thus for 2019 volumes fell by 39% (at the beginning of January, they exceeded 16.5 billion).

The assets in gold, on the contrary, since the beginning of the year increased by 4.1% to at the beginning of February to 19 billion 643 million dollars. According to the world gold Council, Kazakhstan is among the world leaders in terms of reserves of precious metals. Thus, with the increase in the price of gold increases and the volume of international reserves.

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Production breaks records

Growing in Kazakhstan and in-house production. By the end of 2019 in the Republic produced more than 57.6 tonnes of refined gold. This is 5.1% more than the year before. 2020 has also started with growth: about 3.8 tons, and this is the best result for the month of January. Compared to the first month of the 2019 growth amounted to 4.9%.

At the same time, gold remains in the country. Abroad in 2019, were sold 3.3 tonnes of unprocessed or semi-precious metal. That is 7.4% less than in 2018. The majority (2.9 tons) went to Kyrgyzstan. But despite the rise in global prices, exports began to bring much less money: us $5.3 compared to $9.6 million in 2018.

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