The million dollar question of the moment is ,
"What is the right time to buy Gold?"
With so much of news doing rounds all over.. this is the only thing which everyone wants to know..
This blog post by Manshu answers the question if this is the right time to buy gold and there are scores of them available on web answering the same question...
My 2 cents on the same subject.
Disclaimer : I am not an expert,
Crisp Analysis :
Gold as an asset has its key value drivers as dollar, global demand/supply,global inflation.
With increased selling pressure (thanks to Cyprus, Portugal etc), reduced inflation (US,India etc), rising dollar price and booming stock markets the prices of gold are going only south!
But inflation cannot be controlled for long, with reduced interest rates(Quantitative Easing) and increased money supplies into market..sooner or later, it will surely go up... also the real estate bubble is going to see a similar downfall..even if it doesnt nosedive..a significant correction will surely affect the overall market..so the focus might shift towards gold in future.. nothing can rise indefinitely..so is gold is getting into realistic valuation.. the time when it touches it local minima..it will start surging up.
With increased selling pressure (thanks to Cyprus, Portugal etc), reduced inflation (US,India etc), rising dollar price and booming stock markets the prices of gold are going only south!
But inflation cannot be controlled for long, with reduced interest rates(Quantitative Easing) and increased money supplies into market..sooner or later, it will surely go up... also the real estate bubble is going to see a similar downfall..even if it doesnt nosedive..a significant correction will surely affect the overall market..so the focus might shift towards gold in future.. nothing can rise indefinitely..so is gold is getting into realistic valuation.. the time when it touches it local minima..it will start surging up.
Verdict : It will fall for sure in near future and slightly far future might rebound and very long term future will definitely go up.
Dr Ivan Coste-Manière, Professor Luxury Brand Management,Skema Business School, France,
used to say jokingly that you Indians are not poor, you are the largest buyers of Gold in the world...
So much is our affinity towards gold..
specially our women are so emotionally/psychologically/physically/chemically/mentally attached to it...
that they drive their husbands crazy to buy gold jewellery..
And then there are some men also, who are an exception; If the specimen is a prudent one he should be roaming around topless now having sold all that.
I don't think any of the latest developments of the yellow metal is going to affect to our mallus. Marriages in Malluland is more like a gold mela..the brides are covered from top to down with the metal
...So readers..anyone yet to get married.. look forward to get hitched with mallu girls..or check if our friend Dawood Ibrahim has got any more daughters..
I am sure there will be many who will be tempted to buy now after having missed the last gold run..as a matter of fact it was 12 year long run.. running high for so long..our metal is taking a break now..
Below is an analysis of the key value drivers of gold. It was prepared when gold was soaring high, so now we should check if any of the drivers can pull up gold in the coming future.
