ATTRACTIVENESS OF INVESTING IN GOLD AS SAFE ASSETS

This paper aims at  indicating the importance of market trends in  the world after declaration of  financial crisis. First of all,  the accent has been put on the analysis of investments in gold market, with reference to the importance of  understanding  the  influence  of  factors  on  the  growth  of  gold  prices.  In  these terms  efforts  are  being  made  to  answer  why  there  is  strong  turbulence  in  gold market, in terms of rising prices, and why investors prefer investing in safe assets. In addition to that, specific trendy movements in gold market have been presented as increase in gold reserves, or in other words changes in composition of portfolios of foreign reserves in most countries. What is particularlybrought in correlation is the growth in the process of trading for gold and the state of securities market and foreign exchange market, which characterizes the current state of world economy that is going through economic recession.

Key words: financial crises, factors, price, rate, devaluation, hedging, investments, gold, gold reserves

JEL Classification:  E42