The price of gold is synonymous with global markets. There are very few valuable metals or gems that can be considered “global currency,” though throughout history, Gold has always been just that. Widely accepted everywhere, with an often volatile market. In nations like India and China, we’re seeing a rise in gold prices all across the board, especially from 2016. The demand for jewelry is elevating, bringing in a higher demand for everybody’s favorite setting—gold.

The Worldwide Impact

India and China have the seventh and second largest economies, respectively, per the rating of the United Nations. With such a hefty stake in the global economy, their set prices for gold affect the rest of the world. Using both India and China as examples, here’s how their shifts in prices may affect gold prices for the rest of the world in 2017.

India’s Impact

In 2016, India faced a great financial shock in the form of demonetization. With their recovery gaining slowly—the way national recovery should regain momentum—we’re seeing their effects take place on the world’s economy in the gold market. Gold prices leapt up 16% from the previous year’s detrimentally low levels, signifying that the market conditions are changing, and changing for the better. This has jewelry retailers rejoicing, ensuring that their businesses will stay afloat after all.

When the Rupee suffers, the rest of the economy suffers. The RBI specifically eased on their laws, allowing residents to withdraw larger sums of money with fewer restrictions, with the hopes of surging the economy in a similar fashion to George W. Bush’s famous move back in 2007 in the United States. Their hopes have proven effective, assisting in stimulating the economy. This ulterior motive to surge the price and sales of gold worked in their favor, and we see India’s incline on gold prices positively affecting the global market.

China’s Impact

In many markets throughout Asia, jewelry demand surged in late 2016, bringing the supply and demand of gold up, alongside the global market. However, this is not the first time China seen their fair share of gold depreciation, demand, or appreciation. Gold prices have always fluctuated in China’s market, which often follow trends associated with the demand for jewelry. As such, China’s abilities to combat low prices of gold and subjugate the market aren’t of a novice level.

Despite thorough research that conforms to the idea that younger Chinese adults are spending their hard-earned money on experiences, and less on any type of material goods, China is effectively combating their generational gap in those seeking secure, material goods that will be available as global currency at a later date. Most of the younger Chinese adults are utilizing skills and experiences instead of investing in material mans due to the ability to use those skills at a later date to secure their financial future, rather than benching on the prices of a single global currency.