By Ellada Khankishiyeva
Trend (Azerbaijan)
Compared to the data of 17 months ago when gold on commodity markets was worth $1,923.10 per troy ounce, today we can state that gold has dropped in price. The price of gold in the precious metals market totalled $1,597.5 per ounce at the end of the week.
This bothers Azerbaijan which only began to accumulate its reserves in gold both through its own and foreign gold which is acquired by the State Oil Fund on the London market of precious metals. It should also be noted that the revival of the gold mining industry of Azerbaijan was precisely due to the increase in world gold prices making gold deposits of the country attractive and profitable to foreign investors.
However, putting aside the eventful fall in the gold price and related factors such as reduced fears about the collapse of the Eurozone, the U.S. economic recovery and therefore, the increasing value of the dollar, it is still too early to talk about the loss of interest in gold. On the contrary, the instability of the above factors (the recent banking crisis in Cyprus is a good example) shows that gold as a reliable asset will retain its status for a long time which is quite profitable for gold mining countries, including Azerbaijan.