IS It The End For Gold?

by khalid on 17/10/2011 · 0 comments

Gold has seen a decline in the past few weeks. But it’s surely not the end of the road for gold, but the investors need to be cautious. The main risk in gold is its pricing; otherwise the experts don’t see any major risk in it. Gold was ranging high in the previous months and was looking a good bet, but in the recent weeks the decline in its price has dampened the investor confidence. Some of the risks involved are that it is not an essential commodity and people don’t eat gold. If the price of Gold goes beyond certain pint then people will certainly stop buying gold. In 2008 Gold lost more than 30% of its value as the hedge asset should move in the other direction. The currency is also very week and this has also made Gold prices decline.

The time when fear subsides and things start to return to normal then the law of demand and supply will apply to all the assets including Gold. Chicago Mercantile Exchange has got a good margin for Gold and is also a good reader of Gold so things like expecting volatility in Gold and also sales by the lenders do not sound good. If one goes wrong in a good portfolio then they can loose good amount of money, but trading wisely is the best option and thinking for long term investment is the best.

Bell The Bull says: Gold will improve with the improvement in rupee and the market condition

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