By Loubna Flah
By Loubna Flah
Morocco World News
Casablanca, July 25, 2012
If you want to sell a piece of your gold jewelries, it could be just the right time. The prices of gold soared unexpectedly during this week in Morocco in response to a considerable rise in the price of this precious metal in international markets. Market speculations suggest that the prices of gold are more likely to hike sharply due to the economic instability in the European Union.
The price of one gram of 24 carats gold has reached 459, 56 DH after it cost only 450 DH earlier this month. According to the daily Al Massae, Gold sellers in Casablanca predict stagnation in their business since Moroccan families tend to take advantage of this opportunity to sell their jewelries rather than acquiring new sets.
The price of gold tends to rise when the global economy is performing poorly. Over the last two years, gold prices have risen about 70 percent.
There are mounting fears that unraveling economies like Spain may instill more anxiety in stock markets. It is of note that some Spanish cities asked the central government for subsidies to stabilize their deficit.
Moreover, experts are no longer confident about the economic situation in Germany, Luxemburg and Netherlands that were perceived as safe shores among wavering markets in their European neighbors. The value of Gold has been dependent on the Euro fluctuation during the past month.
Gold acquired its reputation as one of the highly sought after commodities mainly due to its capacity to resist acids and erosion. Gold remains the one of the least reactive metals to under standard conditions.
In the Moroccan culture, as in many places in the world, gold jewelries are not just used as ornament. Gold is considered as a hedge against inflation and economic disruptions. It remains a reliable asset that can be used in hard times, especially in recessions.
