After the Central Bank of Europe has adopted a decision to keep the refinancing rate and the President of the EBRD announced the mitigation of monetary policy, demand for dollars has increased in the market which led to lower prices for precious metals, in particular, gold.
The positive US economic data has also contributed to this trend and reinforced the prospect of the dollar growth in the international market According to the Capital Economics analysts, the silver price is going up, the cost of which hit a 11-month high and as of May amounted to $16. 98 per ounce. Experts predict that silver will continue to go up in the next few years. As for the price of gold, itkeeps falling and now stands at $ 1,245 per ounce.
What is going on in the precious metals market in Georgia?
traders on the Gold Exchange say that a worldwide trend has not reached Georgia yet and gold and silver prices remain at the same level as in 2015.
At the same time, merchants speak about a decline in sales both of gold and silver.
According to David Tsikaridze, Director of the Georgian representation of the financial company Galt & Taggart, the global trend of silver price rise is unlikely to affect Georgia.
“Silver is a very specific, industrial product, and it is mainly used in high-tech. So it’s most likely willhave no impact on Georgia and on the world economy. Silver prices hike is associated with growth in high-tech production. Unlike silver, gold is used as a reserve, so in Georgia, where there are no high-tech industries, the demand for gold is much higher than for silver,” he says.