For the last two weeks Gold prices have shown some resistant to bullish tendencies. We can safely say Gold has lost some of its sheen and the chances are the trend is gonna continue. For the last 11 years Gold prices have been in rising making it one of the longest winning streaks for the yellow metal.
The year 2011 shows no negative sign with the Gold touching its peak in September. But since then Gold is breaking down in the international market and with many high profile investors selling their positions, it becomes evident Gold is loosing its luster. Billionaire investor George Soros, who called gold "the ultimate bubble," cut his holdings in the SPDR Gold Trust as early as May. Hedge fund manager and long-time gold bull John Paulson held tight for a few months, but eventually slashed his gold holdings by a third during the third quarter.
Sentiments can play a major role in metal market, not every big player in commodity is saying the mood is negative but the data shows that Gold prices have been highly inflated. Platinum, one of the precious metal which is used in many industrial applications is trading at around $1300 which is way below Gold prices. Ideally it should not be trading less than $100 from Gold which is trading at $1700 per ounce.
The bubble burst could bring down Gold to nearly $1300. Now it is not a safe investment for new investors, it has actually become a dangerous one. In 1980 when Gold prices declined, it had lost 60% of the value in a single year.
Gold had been a safe haven for many investors and had given huge returns as well. But now is not the safe time to invest in it as it is not very stable. Daily price swings have turned away many heavy weights from buying Gold from the market. Now its just a matter of time when Gold prices come crashing to the floor and the bubble bursts. Wait for that time and then invest as Gold, as history suggests, will rally again.
Sentiments can play a major role in metal market, not every big player in commodity is saying the mood is negative but the data shows that Gold prices have been highly inflated. Platinum, one of the precious metal which is used in many industrial applications is trading at around $1300 which is way below Gold prices. Ideally it should not be trading less than $100 from Gold which is trading at $1700 per ounce.
The bubble burst could bring down Gold to nearly $1300. Now it is not a safe investment for new investors, it has actually become a dangerous one. In 1980 when Gold prices declined, it had lost 60% of the value in a single year.
Gold had been a safe haven for many investors and had given huge returns as well. But now is not the safe time to invest in it as it is not very stable. Daily price swings have turned away many heavy weights from buying Gold from the market. Now its just a matter of time when Gold prices come crashing to the floor and the bubble bursts. Wait for that time and then invest as Gold, as history suggests, will rally again.
No comments:
Post a Comment
Please leave your comments.