Let's see now what signs for the economy come from the news of the record high price of gold recently. According to financial analysts, this is also an indicator of the economic slowdown, which may lead to a decrease in interest rates by the end of the year. Expectations are that the precious metal will continue to rise in price. Is this a good or bad signal?
This is what BNT is asking.
According to some analysts, the main reasons for the record price appreciation of gold are the geopolitical tensions of the last 2 years, expectations that the Federal Reserve will reduce interest rates and the slowdown of the American economy.
"If this trend of slowing the US economy continues, it will put pressure on the Federal Reserve to lower interest rates. The trend in Europe is the same as it is in America, namely to lower interest rates", comments Zdravko Pirinliev - investment analyst.
According to other experts, the price of gold is not rising, but the currency in which we value it is depreciating.
"Because more and more unsecured currency is being printed. That is, new debt is constantly being created, which is actually inflation. Gold, as the antithesis of inflation, is a barometer of how much new inflation, new unsecured currency there is in the economy", believes Max Baklayan - executive director of an investment gold company.
The price of gold is an indicator of the state of the economy.
"The higher the price of gold, the more unhealthy the economy.
"Will there be a recession, will there not be a recession - will the Americans make a so-called "soft landing" or something more turbulent could happen to the market. So the risk is higher now compared to what it was two years ago.
In the first quarter of this year, central banks bought nearly 290 tons of investment gold.
"In 2024 at the very beginning - this is the first year in which gold overtakes the euro as the largest asset held on the balance sheets of central banks. In reality, central bankers say they trust gold more than the euro.
In 4 years, the euro, to which the Bulgarian lev is tied, has depreciated by 35%.
"Just since the beginning of this year, gold is up by 23€ up. It - in addition to protecting us from inflation, gives us the opportunity to realize some profit".
And the Bulgarians' interest in investment gold is great.
"Bulgaria ranks third in Europe only after Germany and Poland in the amount of gold purchased per capita in relation to GDP.
In the first half of the year, sales of investment gold in our country increased by 10% compared to the same period last year.