Thursday, 18 April 2013

Is it Right Time to Invest in Gold or Let's Wait!!!

The talk of the town or India today is nothing but GOLD. Whether it’s a right time to buy or can we buy it later?

I would like to share my views about the GOLD as well as the current trend, hope it will give more clarity for you.
Gold has fallen nearly 15% in the past one week. Most of the people believe that this price will never come back and which resulted Rs. 1000 Crore of GOLD were sold during the last one week.

I have written many times before, that GOLD will not be an investment, at the same time 5 to 10% you may be allocated to GOLD as a portfolio diversification.

If you need gold in less than 3 months, probably you can start buying gold at this price say 75%. If you are aiming for long term say more than 3 years plus then you will find GOLD Rs. 2000 per gram soon and buy it at that time.

When the SENSEX falls from 21,000 levels to 8,000 (60% falls) most of the investor told that it will come down to 5000 level and then they will buy and never en cashed the opportunity but when the GOLD price falls most of the investor feel that its life time opportunity and should not miss!

Why different stance for different investments? 

There is a huge rush always in the jewelry shop and there are many occasions we tend to buy so the price will go up are the basic belief of everyone. If that is true, what happened in the last 5 days is nobody buys any GOLD. 

Gold is an international commodity and it has got two risks one is the price and the other is currency risk (our rupee versus dollar). When rupee started appreciating the value of the gold will be coming down even though the GOLD price is not falling in the international market.

We believe in India and its Growth story, and then our rupee will be strengthened soon.

Do not rush and buy GOLD now and you will get a price you like and start accumulating slowly.