In the same way, gold and interest rates also contribute to moving the price of gold, since lower interest rates, which usually occur when there are times of financial uncertainty and governments want people to spend, mean that saving is more difficult. Since gold is also considered a very effective portfolio diversifier due to its low and negative correlation with major asset classes, it tends to rebound in times of uncertainty, so one of the factors to consider is the relationship between gold and other asset classes that feel pressure or pleasure in current financial circumstances. Of course, gold is also consumed as jewelry, and there are large increases in demand even by world governments that seek gold as a store of value that they hold in central banks. Gold and inflation also work together, since inflation is one way in which money can devalue quickly, and when this happens, people prefer to keep their money in something that increases in value rather than in something that increases in value, such as gold.
Therefore, monsoons play an important role in the consumption of gold because if the harvest is good, farmers buy gold with their profits to create assets. Investing in gold has never had a better time to start than right now, the price is about to skyrocket, but participating in the trading of such a product can be difficult due to its physical nature and the exclusivity of many gold brokers, who are not as open to new traders. The policy of quantitative easing is in full swing in some of the largest economies in the world and this is good news for gold, since savings are ignored when it comes to the dollar and a new means of saving, such as gold, is needed. In addition, the fact that gold is a scarce asset, but with an uncertain supply, means that it is often worth watching the markets and forecasting gold prices for the next 10 years can often bring positive gains over this long period of time.
For example, India consumes between 800 and 850 tons of gold annually and rural India accounts for 60 percent of the country's gold consumption. This was known as the gold standard, but in 1971, the President of the United States, Richard Nixon, asked the Federal Reserve to stop respecting the value of the dollar in gold and to end its primary use as a monetary value and helped make the asset more of a store of value. Demand for gold continues to change and, in recent times, has increased as manufacturers of electronic products have seen the use of gold in their products to increase conductivity.
