Gold Markets
The modern market has witnessed massive growth and diversification. The role of the agency relationship has been increasingly emphasized in the gold markets. Agency relationships are fiduciary; such relationships require maximum trust and confidence (Laurie & Mortimer, 2019). These agents have played a key role in performing various business transactions through buying and selling of gold products. They have boosted the rapid growth of the emerging gold markets, for example, Vietnam and the Bangladesh markets. Since the 1970s, the volume of gold produced each year as tripled; the agency relationships have played a key role in realizing this achievement. During the same period, the annual sales of gold have quadrupled. This means the gold market has flourished across the globe courtesy of agency relationships. The agents have been facilitating this trade, making it possible for gold to be bought by a more diverse set of consumers and investors than any other time in history. Don't use plagiarised sources.Get your custom essay just from $11/page
Different sectors of gold have risen to prominence in the global economy due to its diverse use in technology and by investors and banks. The self-balancing nature of its market and diverse demand for gold has transformed it into a valuable investment asset. The last decade as witnessed the markets for the gold shift to East. There has been catalyzed by the income growth and wealth creation by the world’s rapidly growing and markets and also cultural affinity. The gold jewelry represents the largest market for gold annually, accounting for 50% of total demand (Grynberg et al., 2018). India and China have the largest consumer markets, and they account for almost 50% of gold consumption. The new uses of gold, such as in the Rapid Diagnostic Test, have further increased the demand and price of gold. Nevertheless, gold is a crucial asset whose price is not expected to follow anytime soon due to its increased demand.
References
Laurie, S., & Mortimer, K. (2019). How to achieve true integration: the impact of integrated marketing communication on the client/agency relationship. Journal of Marketing Management, 35(3-4), 231-252.
Grynberg, R., Kaulihowa, T., & Singogo, F. (2018). Gold Jewellery Demand and Gold Price Volatility: A Global Perspective. Journal of Economics, Management, and Trade, 1-13.