A < 2 min.read !
Hi Every one !
It is a long time since I contributed on this platform. Well, what I am sharing below is my opinion /advise given to some one close to me recently on a question related to the movement of price of gold !
In fact the present global economic downturn should act as a catalyst for the gold price to shoot up substantially.This is because gold is considered as a good bet in times of high inflation, economic recession,global uncertainties, wars etc.Now all these and many other factors are not able to provide the needed impetus for its price because of a very strong dollar.The dollar index has hit a 20 year high level recently though it retreated somewhat thereafter. Also another factor that is not helping a surge in its price is the unprecedented buoyancy in capital markets more so in emerging economies like India.Usually when markets are dull and dim,investors divert the investments towards other asset classes like gold.
So you may have to wait for a good length of time for a big price spike while it is around Rs.5500/ gm now.Don’t fall a prey to all kinds of projections from various sources.When price starts moving up,suddenly projections start pouring in forecasting the price to hit the roof and vice versa.( this is the usual trend in capital markets too).Make your own analysis and have a profit goal and a suitable long time frame fixed ( which gives you contentment) and start accumulating in a phased manner taking the advantage of dips.Still you better consult an expert after your thorough analysis ( by scanning the price variations over the last four to five years) and then only invest. Such data are available on websites like www.gold price.org, www.kitco.com etc. I am furnishing two links below ;one for a similar question answered by me elsewhere and another one for a blog penned by me a couple of years ago that covers some general facets of gold.
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