Gold has corrected significantly in the first fortnight of April 2013. The precious metal is now available at attractive levels. Even a week before investment in gold seemed too steep. But on Monday the day when gold prices saw biggest ever one-day loss in dollar terms PIMCO's Bill Gross tweeted , "I would still buy gold here. World reflating."
The huge sell off in gold was triggered by the prospect of selling of gold assets by Cyprus and other PIGS(Portugal, Ireland, Greece and Spain) countries' Central Banks. On the other hand, World Gold Council reported six major countries; Russia, Turkey, South Korea, Brazil, Kazakhstan and Iraq; have been consistently buying gold. This is good news for gold investors. Any potential selling pressure in gold will thus be set-off by the continuing gold buying by these nations.
More over gold reserves of these countries are meager 2.5% of total gold holdings in the world. Even a sell-off by these countries will not have a significant impact on the gold prices in global markets. The last week's fall was mainly due to speculative trades.
The demand for gold in India is largely attributed to the marriage season . The falling prices is a good news to the brides and all the jewelry buyers this season! On Saturday there was scramble for gold bars and coins in Dubai markets which reported a shortage in the supply of the physical gold. This demand for the yellow metal will support and strengthen gold prices further. If you had skipped jewelry shops recently NOW is the time to add that glitter to your investments!
More over gold reserves of these countries are meager 2.5% of total gold holdings in the world. Even a sell-off by these countries will not have a significant impact on the gold prices in global markets. The last week's fall was mainly due to speculative trades.
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| Pleased with prices!! (Photo Credits: QZ.com) |
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