As per commodities experts, gold prices are going to see a rise this year, and may touch US$ 1,700 per ounce or higher. This would be an increase of around US 400 from the current level of US$ 1,300 per ounce.
Although, gold prices witnessed a decline in December last year, experts are much more optimistic for this year. The decrease in the last month of 2017 was due to investors choosing stocks over gold with the tax plan of US President Donald Trump nearing completion.
Experts believe that the prices of the precious metal could see upsurge, but has been artificially curbed due to paper gold trading on Western exchanges. To give an instance, experts at Precious Metal Advisory Switzerland opine that although 1.5 million tons of gold has been estimated to have traded in total volume in the London Over-the-Counter (OTC) gold market, in comparison only 180,000 tons of gold have actually been mined up till date.
However, the trend in paper gold trading is likely to witness a change. Market specialists state that such paper scams will die its death as and when the price of paper gold will decrease to zero or when investors start insisting on receiving physical gold in return for their investments. Along with the western countries, even BRICS countries such as Russia and China are planning to launch gold standard on the basis of physical gold.
With the possible increase in physical gold trade, paper gold trading may witness a decline, which would have far-reaching impact as it could lead to disintegration of the current system of paper trading, and thereby, hiking the pricing of the precious metal.