The Australian gold market relies heavily on China. China is the number one buyer of Australian gold. It’s not just gold that Aussies trade with China but a lot of other Aussie products are exported to China, so if something bad happens in China, the Australian economy reacts.
The U.S / China trade war had a serious impact on economy in Australian. The Australian Dollar fell to decade long lows. By the October of 2019, the AUD/USD rate fell to 0.6670. The Reserve Bank of Australia was slow to react.
An adjustment of 0.4% was made to the economy in September and by then government eased its spending helping the household consumption to grow.
The unemployment levels dropped, pushing the Australian Reserve Bank to reduce rates to 0.7%. More cuts are expected in 2020. Since December 2013, wages have grown slowly. They grew by 2-3%, which is less than a point below the ten-year average. The Reserve Bank of Australia’s rate cuts have done little to help wages to grow.
Australian traders are reading that the downturn is not over which means that more Australians are looking at alternative ways to make money. Enter Brisbane gold brokers. Gold dealers of gold buyers aren’t that new to Brisbane. One can say they have always been around since the 1850 gold rush when miners needed to sell gold nuggets. The gold buyers you would find these days allow ordinary people to trade whatever gold they have. It could be a nugget that someone stumbled upon while fossicking or gold jewellery that is not used or is old or broken; they buy gold coins and gold bars. Gold dealers provide a necessary service for the gold industry. Gold is not a finite resource. There isn’t that much gold left to supply the needs that the world currently has and will have in the future. It is important to strengthen recycling efforts and that is what Brisbane gold brokers do. They are also a means by which ordinary people can participate in the gold trade and make money from the gold they have.
In the last decade, we have seen an increase in the number of gold buyers setting up shop all over. One major reason is the rising price of gold and the growing geopolitical tensions that have largely been fuelled by the US. It seems that every time the US sneezes, the world catches a cold. Ever since Donald Trump came into power with his radical and divisive policies, the world pretty much revolved around what he says or does.
The US applied tariffs on a lot of goods from China early on 2018 and since then the two countries have been going back and forth. The end is not clearly in sight. Trump has done other incredible things like pull out of the Paris Climate deal, cozied up to North Korea, re-institute sanctions against Iran and pull U.S troops out of Syria during a critical point. All these decisions have been good for the price of gold because everybody moves their money to historical hedges like gold and so the price has soared. America will be heading to elections in November but already, there is uncertainty over Trumps tenure, especially with the current impeachment process. His tenure may be cut short and his policies challenged. It’s hard to predict what would happen but everyone is expecting the price of gold to go higher.